of

$15,000,000

(market value,

$15,000,000

)\ Requirements\ Compute the cost of goodwill purchased by Potters.\ Record the purchase of Krandell by Potters.\ Requirement 1. Compute the cost of goodwill purchased by Potters.\ Purchase price to acquire Krandell\ Market value of Krandell's assets\ Less: Market value of Krandell's liabilities\ Less: Market value of Krandell's net assets\ Goodwill\ Requirement 2. Record the purchase of Krandell by Potters, Inc. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)\ Date

Potters has acquired several other companies. Assume that Potters purchased Krandell for $12,000,000 cash. The book value of Krandell's assets is $13,000,000 (market value, $19,000,000 ), and it has liablities of $15,000,000 (market value, $15,000,000 ). Requirements 1. Compute the cost of goodwill purchased by Potters. 2. Record the purchase of Krandell by Potters. Denuirament 1 Comnute the rnst of anodwill nurchased by Potters