Patton has acquired several other companies. Assume that Patton purchased Kate for $8,000,000 cash. The book value of Kate's assets is $12,000,000 (market value, $15,000,000), and it has liabilities of $13,000,000 (market value, $13,000,000). Requirements 1. Compute the cost of goodwill purchased by Patton. 2. Record the purchase of Kate by Patton. Requirement 1. Compute the cost of goodwill purchased by Patton. 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 Requirement 2. Record the purchase of Kate 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 Choose from any list or enter any number in the input fields and then continue to the next