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Question no. 2 Linden Corporations is negotiating for the purchase of Hill Company. The following is an abbreviated balance sheet of Hill. Hill Company
Question no. 2 Linden Corporations is negotiating for the purchase of Hill Company. The following is an abbreviated balance sheet of Hill. Hill Company Balance Sheet As of December 31, 2025 Assets Liabilities and Stockholders' Equity Cash $150,000 Land $100,000 Accounts payable Equipment, net 230,000 Notes payable (long-term) 250,000 140,000 Trademark 200,000 Common stock 40,000 Retained earnings 30,000 Total assets Total liabilities and $570,000 stockholders' equity $570,000 Additional Information: 1. Land is undervalued by $20,000. 2. Equipment is overvalued by $3,000. Hill agrees to sell the business to Linden for $370,000. Calculate the value of goodwill, if any and prepare the entry to record the purchase of Hill Company on Linden's books.
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