Prepare the journal entry at December 31, 2020 that Luthby Corp would make to record the purchase of the net assets of

Cranston Company.

What are two factors that could result in a company purchasing another company for an amount greater than the fair

market value of the net assets which would result in goodwill?

corp put the nelasses of Cranston Company on December 31, 2020 tor 1975,000 The wings e bance sheet for Cranston Company on that date Cranston Company Balance Sheet As at December 31, 2020 Assets Isabilities & S/H Equity Accounts Receivable Inventory Long Term Investments Plant & Equipment (et) $340,000 100,000 120,000 360 000 8920.000 Accounts Payable Bonds Payable Common Stock Retamed Earnings $120,000 250,000 10,000 540,000 $220.000 Aditional data 1 The inventory is overvalued by $10,000 2 The long-term investments are undervalued by $75,000 3. The plant & equipment is overvalued by $45.000 4. All other assets and liabilities have tair values that are equal to their carrying amounts