has acquired several other companies. Assume that Princeton purchased Kit for $ 7 comma 000 comma 000 cash. The book value of Kit's assets is $ 14 comma 000 comma 000 ?(market value, $ 17 comma 000 comma 000?), and it has liabilities of $ 16 comma 000 comma 000 ?(market value, $ 16 comma 000 comma 000?). Requirements 1. Compute the cost of goodwill purchased by Princeton. 2. Record the purchase of Kit by Princeton. Requirement 1. Compute the cost of goodwill purchased by Princeton. Purchase price to acquire Kit Market value of Kit's assets Less: Market value of Kit's liabilities Less: Market value of Kit's net assets Goodwill Requirement 2. Record the purchase of Kit by Princeton?, Inc. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.) Date Accounts and Explanation Debit Credit