Princeton has acquired several other companies. Assume that Princeton purchased Kittery for $11,000,000 cash. The book value of Kittery's assets is $17,000,000 (market value, $18,000,000), and it has liabilities of $11,000,000 (market value, $11,000,000) Requirements 1. Compute the cost of goodwill purchased by Princeton. 2. Record the purchase of Kittery by Princeton. Requirement 1. Compute the cost of goodwill purchased by Princeton. Purchase price to acquire Kittery Market value of Kittery's assets Less: Market value of Kittery's liabilities Less: Market value of Kittery's net assets Goodwill