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Perkins has acquired several other companies. Assume that Perkins purchased Kelleher for $9,000,000 cash. The book value of Kelleher's assets is $13,000,000 (market value, $16,000,000),
Perkins has acquired several other companies. Assume that Perkins purchased Kelleher for $9,000,000 cash. The book value of Kelleher's assets is $13,000,000 (market value, $16,000,000), and it has liabilities of $11,000,000 (market value, $11,000,000). Requirements 1. Compute the cost of goodwill purchased by Perkins. 2. Record the purchase of Kelleher by Perkins
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Financial Accounting Information For Decisions
Authors: Robert w Ingram, Thomas L Albright
6th Edition
9780324313413, 324672705, 324313411, 978-0324672701
