Twitter Bay Data Table - - X 1 in the futu Assets Current assets $ Liabilities and Equity 13 Total liabilities $ 18 Shareholders' equity 31 + 16 Long-term assets 15 $ 31 munt for good Print Done oodwill that aired Tu. Assume that Twitter Bay paid $20 million to purchase Renren.com. Assume further that Renren had the following summarized data at the time of the Twitter Bay acquisition (amounts in milions of U.S. dollars). (Click the icon to view data.) Renren's long-term assets had a current value of only $13 million Required 1. Compute the cost of the goodwill purchased by Twitter Bay. 2. Record the purchase of Renren. 3. Explain how Twitter Bay will account for goodwill in the future. Requirement 1. Compute the cost of the goodwill purchased by Twitter Bay. Cost of goodwill purchased: (in millions) Purchase price paid for Renren Fair value of Renren's net assets: Fair value of Renren's assets Less: Renren's liabilities Fair value of Renren's net assets Choose from any list or enter any number in the input fields and then continue to the next question. Assume that Twitter Bay paid $20 million to purchase Renren.com. Assume further that Renren had the following summarized data at the time of the Twitter Bay acquisition (amounts in millions of U.S. dollars). (Click the loon to view data.) Rerver's long-term assets had a current value of only $13 million Required 1. Compute the cost of the goodwill purchased by Twitter Bay. 2. Record the purchase of Renren. 3. Explain how Twitter Bay will account for goodwill in the future. Accounts Debit Credit Requirement 3. Explain how Twitter Bay will account for goodwil in the future Twitter Bay will determine whether the Renren's goodwill that Twitter Bay has purchased has fair value has decreased, that is if the value is impaired, Twitter Bay a loss on goodwill and to record. If the goodwills in value. If the goodwill's value has increased, there is the carrying value of the goodwill. Choose from any list or enter any number in the input fields and then continue to the next