Problem 8-34A Accounting for intangible assets Mitre Company acquired Midwest Transportation Co. for SI 1,400,000. The fair market values of $4,000the assets acquired were as follows No liabilities were assumed. Equipment Land Building Franchise (10-year life) $510,000 150,000 520,000 40,000 Required a. Calculate the amount of goodwill acquired. b. Prepare the journal entry to record the amortization of the franchise fee at the end of year I. Problem 8-35A Accounting for goodwill Rossie Equipment Manufacturing Co. acquired the assets of Alba Inc., a competitor, in 2016.It recorded goodwill of $70,000 at acquisition. Because of defective machinery Alba had produced prior to the acquisition, it has been determined that all of the acquired goodwill has been perma- nently impaired