Godwin, Inc. paid $30,000,000 to purchase Getman, Ltd. At the date of purchase, Getman, Ltd. had assets

Question:

Godwin, Inc. paid $30,000,000 to purchase Getman, Ltd. At the date of purchase, Getman, Ltd. had assets with a current market value of $50,000,000 and liabilities with a current market value of $26,000,000.

Required:

A. Determine the amount of goodwill Godwin, Inc., should report as a result of the purchase.

B. What is the minimum amount of amortization expense Godwin, Inc., could record at the end of one year?

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...