Princess has acquired several other companies Assume that Princess purchased Kate for $10,000,000 cash The book value of Kate's assets is 516,000,000 (market value, $17,000,000), and has labilities of $15,000,000 (market value, $15,000,000) Requirements Compute the cost of goodwill purchased by Princess Record the purchase of Kate by Princess Requirement 1. Compute the cost of goodwill purchased by Princess 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