Question $2$ of $3$

This question: $6$ point$($s$)$ possible

Patton has acquired several other companies. Assume that Patton purchased Kittery for $$5,000,000$ cash. The book value of Kittery's assets is $$14,000$ $$15,000,000),$ and it has liabilities of $$13,000,000($market value, $$13,000,000).$

Requirements

Compute the cost of goodwill purchased by Patton

Record the purchase of Kittery by Patton.

Goodwill

Requirement $2.$ Record the purchase of Kittery by Patton, Inc. $($Record debits first, then credits. Select the explanation on the last line of the journal en