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Quick Airlines Ltd. financial data follow: Book value of assets $750,000 Market value of assets 860,000 Book value of liabilities 140,000 Slow Airlines Ltd. has
Quick Airlines Ltd. financial data follow:
| Book value of assets | $750,000 |
| Market value of assets | 860,000 |
| Book value of liabilities | 140,000 |
Slow Airlines Ltd. has agreed to purchase Quick Airlines Ltd. for $1,000,000 cash on January 1 of the current year.
| a) | Determine the amount of goodwill, if any. |
| b) | Prepare the journal entry to record the purchase of Quick Airlines Ltd. |
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Managing The Audit Function A Corporate Audit Department Procedures Guide
Authors: Michael P. Cangemi, Tommie W. Singleton
3rd Edition
0471281190, 978-0471281191
