Roxbury, Corp., aggressively acquired other companies. Assume that Roxbury, Corp., purchased Lallor, Inc., for $15 million cash. The market value of Lallor’s assets is $20 million, and it has liabilities with a market value of $6 million.
1. Compute the cost of goodwill purchased by Roxbury, Corp.
2. Record the purchase of Lallor, Inc., by Roxbury, Corp.