Patton has acquired several other companies. Assume that Patton purchased Kittery for $10,000,000 cash. The book value of Kittery's assets is $17,000,000 (market value, $18,000,000), and it has liabilities of $12,000,000 (market value, $12,000,000). Requirements 1. Compute the cost of goodwill purchased by Patton. 2. Record the purchase of Kittery by Patton. Requirement 1. Compute the cost of goodwill purchased by Patton. Purchase price to acquire Kittery Market value of Kittery's assets Less: Market value of Kittery's liabilities Less: Market value of Kittery's net assets Goodwill Requirement 2. Record the purchase of Kittery by Patton, Inc. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Requirement 2. Record the purchase of Kittery by Patton, Inc. (Record debits first, then credits. Select the explanation on the last | the journal entry table.) Date Accounts and Explanation Debit Credit Assets Cash Equity Gain on Disposal Goodwill Liabilities Loss on Disposal Notes Payable