Lopez Company acquired Atlantic Transportation Co for 1 300 000 The fair
Lopez Company acquired Atlantic Transportation Co. for $1,300,000. The fair market values of the assets acquired were as follows. No liabilities were assumed.
Equipment ........... $500,000
Land .............. 150,000
Building ............ 520,000
Franchise (10-year life) ....... 30,000

Required
a. Calculate the amount of goodwill acquired.
b. Prepare the journal entry to record the amortization of the franchise fee at the end of year 1.

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