Assume that Linkedin paid $21 million to purchase Rock.com. Assume further that Rock had the following summarized data at the time of the Linkedin acquisition (amounts in millions of U.S. dollars). Assets Current assets $ 25 Liabilities and Equity 10 Total liabilities ... $ 23 Shareholders' equity 33 $ 8 Long-term assets $ 33 Rock's long-term assets had a current value of only $18 million. Required 1. Compute the cost of the goodwill purchased by Linkedin. 2. Record the journal entry for the purchase of Rock. 3. Explain how LinkedIn will account for goodwill in the future. Requirement 1: Cost of Goodwill Cost of goodwill purchased (in millions) Purchase price paid for Rock Fair value of Rock's net assets For value of Rockets (various) Less Rock's abilities (various) Fair value of Rock's het assets Cost of goodwill Requirement 2: Journal Entry Journal Entry Debit Credit 31-Jan Requirement 3. Explain how Linkedin will account for goodwill in the future Linkedin will determine whether the Rock's goodwill that Linkedin has purchased has If the goodwill's value has increased there is at the goodwill's fair value has decreased, that is if the value is impaired, Linkedin loss on goodwill and in value to record the carrying value of the goodwill