Mike's Market paid $$190,000$ to acquire Fast Gas, a corner store and gas station. At the time of the acquisition, Fast Gas' balance sheet reported total assets of $$170,000$ and liabilities of $$90,000.$ The fair value of Fast Gas' assets was $$130,000.$ The fair value of Fast Gas' liabilities was $$90,000.$

Requirements

How much goodwill did Mike's Market purchase as part of the acquisition of Fast Gas?

Journalize Mike's Market's acquisition of Fast Gas.

Requirement $1.$ How much goodwill did Mike's Market purchase as part of the acquisition of Fast Gas?

Purchase price to acquire Fast Gas

Fair value of Fast Gas' assets

Less: Fair value of Fast Gas' liabilities

Less: Fair value of Fast Gas' net assets

Goodwill