Peter s Restaurants acquired Corner Diners The financial records of Corner
Peter’s Restaurants acquired Corner Diners. The financial records of Corner Diners
included the following:
Book Value of Assets ....................................................................................... $2.3 million
Market Value of Assets .................................................................................... 2.45 million
Market Value of Liabilities................................................................................ 1.1 million

Requirements
1. Make the journal entry to record Peter’s Restaurants’ purchase of Corner Diners for $2.2 million cash, including any goodwill.
2. How should Peter’s Restaurants account for this goodwill after acquiring Corner Diners? Explain in detail.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help