Patton has acquired several other companies. Assume that Patton purchased Kit for $9,000,000 cash. The book value of Kit's assets is $18,000,000 (market value, $19,000,000), and it has liabilities of $16,000,000 (market value, $16,000,000). Requirements 1. Compute the cost of goodwill purchased by Patton. 2. Record the purchase of Kit by Patton. Purchase price to acquire Kit Patton has acquired several other companies. Assume that Patton purchased Kit for $9,000,000 cash. The book value of Kit's assets is $18,000,000 (market value, $19,000,000), and it has liabilities of $16,000,000 (market value, $16,000,000). Requirements 1. Compute the cost of goodwill purchased by Patton. 2. Record the purchase of Kit by Patton Requirement 1. Compute the cost of goodwill purchased by Patton. Purchase price to acquire Kit Market value of Kit's assets Less: Market value of Kit's liabilities Less: Market value of Kit's net assets Goodwill