Mia-Tora Company purchased a fast-food restaurant for $1,400,000. The fair market values of the assets purchased were

Question:

Mia-Tora Company purchased a fast-food restaurant for $1,400,000. The fair market values of the assets purchased were as follows. No liabilities were assumed.
Equipment ........ $320,000
Land ......... 200,000
Building ......... 650,000
Franchise (5-year life) ... 100,000
Required
Calculate the amount of purchased.

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...