E$7-51$B$.($Learning Objectives $5,6$: Calculate and account for goodwill and impairment$)$ Assume Voltron

Company paid $$22$ million to acquire Brighton Industries. Assume further that Brighton had the following summarized

data at the time of the Voltron acquisition $($amounts in millions$)$:

Brighton's current assets had a current market value of $$11$ million, long$-$term assets had a current market value of only

$$19$ million, and liabilities had a market value of $$23$ million.

Requirements

Calculate the cost of goodwill purchased by Voltron.

Describe how Voltron's purchase of Brighton Industries would impact Voltron's balance sheet and income

statement.