Middle Telecom provides communication services in Iowa, Nebraska, the Dakotas,

Middle Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Middle purchased goodwill as part of the acquisition of Shipley Wireless Enterprises, which had the following figures:
Book value of assets......$ 750,000
Market value of assets....... 900,000
Market value of liabilities ..... 550,000
Requirements
1. Journalize the entry to record Middle’s purchase of Shipley Wireless for $400,000 cash plus a $600,000 note payable.
2. What special asset does Middle’s acquisition of Shipley Wireless identify? Flow should Middle Telecom account for this asset after acquiring Shipley Wireless? Explain in detail.
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...