Assets Liabilities and Equity 8 Total liabilities $ 25 24 7 Shareholders' equity $ 32 32 Current assets Long-term assets Required 1. Compute the cost of the goodwill purchased by Face 2. Record the purchase of Myspace 3. Explain how Face will account for goodwill in the future Requirement 1. Compute the cost of the goodwill purchased by Face Cast of goodwill purchased Purchase pece paid for Myspace Far salue of Myspace's net assets Fair value of Myspace's assets Far value of Myspace's net assets Cost of goodwill Requirement 2. Record the purchase of Myspace Record debits first, then credits. Explanations are not required) Journal Entry Accounts Deb Credit Purchase price paid for Myspace Fair value of Myspace's net assets Far value of Myspace's assets Less Myspace's labelbes Far value of Myspace's net assets Cost of goodwil Requirement 2. Recoid the purchase of Myspace (Record debits first, then credits. Explanations are not required.) Journal Entry Accounts Debit Credi Requirement 3. Explain how Face will account for goodwill in the futur Face will determine whether the Myspace's goodwill that Face has purchased has has decreased, that is if the value is impaired, Face value if the goodies value has increased, there is to recont if the goodwill's fair valan a loss on goodwill and the carrying value of the goodwell