(Learning Objective 5: Computing and accounting for goodwill) Assume Haledan paid $16 million to purchase Northshore.com. Assume further that Northshore had the following summarized data at the time of the Haledan acquisition (amounts in millions):

Northshore’s long-term assets had a current market value of only $18 million.

❙ Requirements 1. Compute the cost of goodwill purchased by Haledan.
2. Journalize Haledan’s purchase of Northshore.
3. Explain how Haledan will account for goodwill in the future.