Princess has acquired several other companies. Assume that Princess purchased Kettle for $11,000,000 cash. The book value

Question:

Princess has acquired several other companies. Assume that Princess purchased Kettle for $11,000,000 cash. The book value of Kettles assets is $12,000,000 (market value, $16,000,000), and it has liabilities of $12,000,000 (market value, $12,000,000).
Requirements
1. Compute the cost of the purchased by Princess.
2. Record the purchase of Kettle by Princess. 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...