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
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  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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