On January 2, 2017, Snug Clothing Consignments purchased showroom fixtures for $12,000 cash, expecting the fixtures to remain in service for five years. Snug has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On September 30, 2018, Snug sold the fixtures for $6,500 cash. Record both depreciation expense for 2018 and sale of the fixtures on September 30, 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that 2017 depreciation was recorded and posted in 2017.) Begin by recording the depreciation expense for January 1, 2018 through September 30, 2018. Date Accounts and Explanation Debit Credit Sep. 30 Accumulated DepreciationFixtures Book value Cash Depreciation Expense-Fixtures Fixtures Gain on Disposal Loss on Disposal Maintenance Expenses Princess has acquired several other companies. Assume that Princess purchased Kate for $7,000,000 cash. The book value of Kate's assets is $12,000,000 (market value, $15,000,000), and it has liabilities of $10,000,000 (market value, $10,000,000). Requirements Compute the cost of goodwill purchased by Princess. 2. Record the purchase of Kate by Princess. Requirement 1. Compute the cost of goodwill purchased by Princess. Purchase price to acquire Kate Market value of Kate's assets Less: Market value of Kate's liabilities Less: Market value of Kate's net assets Goodwill