On January 1, 2017, Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market

Question:

On January 1, 2017, Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the net assets purchased equals $1,800,000.
1. What is the amount of that Robinson records at the purchase date?
2. Explain how Robinson would determine the amount of amortization for the year ended December 31, 2017.
3. Robinson Company believes that its employees provide superior customer service, and through their efforts, Robinson Company believes it has created $900,000 of . How would Robinson Company record this ?
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...