- 11 = Problem 2 (10 points): On June 1, 2020, Rocker Company paid $3,200,000 to acquire Cycleworks Corporation, which became a division of Rocker Company. Cycleworks Corporation reported the following balance sheet at the time of the acquisition: Accounts receivable 300,000 Accounts payable 200,000 Inventory 600,000 Notes payable 500,000 PPE, net 1,700,000 Patent 100,000 Stockholders' equity 2,000,000 Total Assets 2,700,000 Total Liab, and SE 2,700,000 At acquisition, the book value of the assets was determined to approximated fair value except for the patent which has a fair value of $700,000. a) Compute the amount of goodwill recognized on June 1, 2020 by Rocker Company, if any (show your work). 2 Problem 2. continued b) Prepare the June 1" joumal entry for Rocker Company to record the purchase of Cudowarks Corporation Date Account Debit Credit Ited States) Focus