Question: On September 1 2014 Luigi Corporation acquired Edinburgh Enterprises for
On September 1, 2014, Luigi Corporation acquired Edinburgh Enterprises for a cash payment of $863,000. At the time of purchase, Edinburgh's statement of financial position showed assets of $900,000, liabilities of $460,000, and owners' equity of $440,000. The fair value of Edinburgh's assets is estimated to be $1,160,000. Calculate the amount of goodwill acquired by Luigi.
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