Question

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.



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  • CreatedApril 29, 2014
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