Assets Current assets Long-term assets $ 20 Liabilities and Equity 8 Total liabilities $ 20 Shareholders' equity... 28 8 $ $ 28 Requirement 1. Compute the cost of the goodwill purchased by Twitter. Cost of goodwill purchased: (in millions) Purchase price paid for Myspace Fair value of Myspace's net assets: Fair value of Myspace's assets Less: Myspace's liabilities Fair value of Myspace's net assets Cost of goodwill Requirement 2. Record the purchase of My Record debit first, then credits. Explanations are not required.) Journal Entry Accounts Debit Credit Requirement. Explain how Twitter wil wount for goodwill in the future Twitter wil dine whether they are goodwill that Twitter has purchased as in value of the goodwill value has increased, there is value is impared. Twitter a loss on goodwill and the carrying value of the goodwil. to record. If the goods far value has decreased ratis the Requirement 2. Record the purchase of Myspace. (Record debits first, then credits. Explanations are not required.) Journal Entry Accounts Debit Credit Requirement 3. Explain how Twitter will account for goodwill in the future, to record. If the goodwir's fair ve Twitter will determine whether the Myspace's goodwill that Twitter has purchased has in value. If the goodwill value has increased, there is value is impaired, Twitter a loss on goodwill and the carrying value of the goodwill Assume that Twitter paid $20 million to purchase Myspace.com. Assume further that Myspace had the following summarized data at the time of the B (Click the icon to view data.) Myspace's long-term assets had a current value of only $15 million