Pilgrim has acquired several other companies. Assume that Pilgrim purchased Kit for $8,000,000 cash. The book value of Kit's assets is $14,000,000 (market value, $16,000,000), and it has liabilities of $10,000,000 (market value. $10,000,000) Requirements 1. Compute the cost of goodwill purchased by Pilgrim. 2. Record the purchase of Kit by Pilgrim. Requirement 1. Compute the cost of goodwill purchased by Pilgrim. 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