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On March 3 1 , 2 0 2 5 , Blossom Company paid $ 5 , 9 7 1 , 0 0 0 to acquire
On March Blossom Company paid $ to acquire all of the common stock of Drive Incorporated, which became a
division of Blossom. Drive reported the following balance sheet at the time of the acquisition:
It was determined at the date of the purchase that the fair value of the identifiable net assets of Drive was $ Over the next
months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate
substantial losses for the foreseeable future. At December Drive reports the following balance sheet information:
Finally, it is determined that the fair value of the Drive Division is $ on December
a
Compute the amount of goodwill recognized, if any, on March If answer is zero, do not leave answer field blank. Enter for
the amount.
The amount of goodwill $
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