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Compute the cost of goodwill purchased by Princeton

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Reference no: EM133061930

Question - Princeton has acquired several other companies. Assume that Princeton purchased Kit for $7,000,000 cash. The book value of Kit's assets is $18,000,000 (market value, $19,000,000), and it has liabilities of $16,000,000 (market value, $16,000,000).

Required -

1. Compute the cost of goodwill purchased by Princeton.

2. Record the purchase of Kit by Princeton.

Reference no: EM133061930

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