Backstreets Co. recently acquired all of jungle land, Inc:s net assets in a business acquisition. The cash

Question:

Backstreets Co. recently acquired all of jungle land, Inc:s net assets in a business acquisition. The cash purchase price was $12.6 million. Jungle land. Inc.'s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $2.4 million: buildings, $5.8 million; inventory. $3.4 million; long-term notes payable, for which Backstreets Co. assumes payment responsibilities. $2.5 million.

Required:

How much goodwill will result from this transaction?

Goodwill
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...