Assume Google paid $18 million to purchase MySpace.com. Assume further that MySpace had the following summarized data at the time of the Google acquisition (amounts in millions):

MySpace's long-term assets had a current market value of only $15 million.
Required
1. Compute the cost of goodwill purchased by Google.
2. Journalize Google's purchase of MySpace.
3. Explain how Google will account for goodwill in the future.

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