Compute the cost of the goodwill purchased by princess

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Reference no: EM131819856

Question: Measuring and recording goodwill Princess has acquired several other companies. Assume that Princess purchased Kettle for $11,000,000 cash. The book value of Kettle's assets is $12,000,000 (market value, $16,000,000), and it has liabilities of $12,000,000 (market value, $12,000,000).

Requirements: 1. Compute the cost of the goodwill purchased by Princess.

2. Record the purchase of Kettle by Princess.

Reference no: EM131819856

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