Question 1 5 Points Pizza Planet is a well-known family pizza restaurant located in the Tri-County...

  

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Question 1 5 Points Pizza Planet is a well-known family pizza restaurant located in the Tri-County Area and has earned its reputation as a fun place for kids with its space-themed design, and its offerings of unique pizza flavours. While Pizza Planet offered amazing pizzas, it realized that there is a market opportunity for other fast food as well. To enter this market, Pizza Planet acquires Poultry Palace, a fast-food restaurant famous for its fried chicken. Lately, Poultry Palace has seen a decline in its sales as well as its reputation since it was accused of false advertising and bad food quality. Following is the information related to the acquisition: (a) Fair value of the assets of Poultry Palace = $1,750,000 (b) Fair value of the liabilities of Poultry Palace = $600,000 (c) Pizza Planet agrees to pay all the outstanding liabilities, as well as $1,500,000 in cash for the acquisition. Explain what will happen to the value of goodwill on Pizza Planet's Balance Sheet as a result of this transaction? Question 1 5 Points Pizza Planet is a well-known family pizza restaurant located in the Tri-County Area and has earned its reputation as a fun place for kids with its space-themed design, and its offerings of unique pizza flavours. While Pizza Planet offered amazing pizzas, it realized that there is a market opportunity for other fast food as well. To enter this market, Pizza Planet acquires Poultry Palace, a fast-food restaurant famous for its fried chicken. Lately, Poultry Palace has seen a decline in its sales as well as its reputation since it was accused of false advertising and bad food quality. Following is the information related to the acquisition: (a) Fair value of the assets of Poultry Palace = $1,750,000 (b) Fair value of the liabilities of Poultry Palace = $600,000 (c) Pizza Planet agrees to pay all the outstanding liabilities, as well as $1,500,000 in cash for the acquisition. Explain what will happen to the value of goodwill on Pizza Planet's Balance Sheet as a result of this transaction?