Problem 3 Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value Fair Value Current Assets $ 11,400,000 $14,400,000 Property, Plant & Equipment (PP&E) Other Assets 3,400,000 4,400,000 Current Liabilities 7,800,000 Long-term Liabilities 13,200,000 20,200,000 26,200,000 7,800,000 12,200,000 Required: Calculate the amount paid for goodwill and journalize the purchase.

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Required: Calculate the amount paid for goodwill and journalize the purchase