E12.11 (LO 3) (Accounting for Goodwill) Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galleries. The following balance sheet of Zweifel is given in an abbreviated form as follows. Zweifel Galleries Balance Sheet As of December 31, 2020 Assets Cash Land Buildings (net) Equipment (net) Copyrights (net) Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Total liabilities Common stock Retained earnings Total liabilities and stockholders' equity $100,000 70,000 200,000 175,000 30,000 $575,000 $ 50,000 300,000 350,000 $200,000 25,000 225,000 $575,000 Moss and Zweifel agree that: 1. Land is undervalued by $30,000. D 2. Equipment is overvalued by $5,000. Zweifel agrees to sell the gallery to Moss for $350,000 de Instructions Prepare the entry to record the purchase of Zweifel Galleries on Moss's books