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Princeton has acquired several other companies. Assume that Princeton purchased Kettle for $11,000,000 cash. The book value of Kettle's assets is $17,000,000 (market value, $20,000,000),
Princeton has acquired several other companies. Assume that Princeton purchased Kettle for $11,000,000 cash. The book value of Kettle's assets is $17,000,000 (market value, $20,000,000), and it has liabilities of $16,000,000 (market value, $16,000,000). Requirements 1. Compute the cost of goodwill purchased by Princeton. 2. Record the purchase of Kettle by Princeton
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