Dougs Diner acquired a fast-food restaurant for $1,500,000. The fair market values of the assets acquired were
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Doug’s Diner acquired a fast-food restaurant for $1,500,000. The fair market values of the assets acquired were as follows. No liabilities were assumed.
Equipment ................................................$380,000
Land .............................................................200,000
Building .......................................................680,000
Franchise (5-year life) ................................120,000
Required
Calculate the amount of goodwill acquired.
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...
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Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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