Alto Devices acquires Medifast, a small start- up company, by paying $ 2,170,000 in cash on January

Question:

Alto Devices acquires Medifast, a small start- up company, by paying $ 2,170,000 in cash on January 2. Below are the book values and fair values of Medifast on the date of acquisition.

Required
a. What is the amount of goodwill acquired?
b. What intangible assets are acquired? Which of the intangibles have an indefinite life? Which will be amortized? What will the amortization expense be in the year after acquisition?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...