Requirement 1. Compute the cost of goodwill purchased by Perkins.

Requirement 2. Record the purchase of Kit by Perkins, Inc. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Patton has acquired several other companies. Assume that Patton purchased Kit for $9,000,000 cash. The book value of Kit's assets is $17,000,000 (market value, $18,000,000), and it has liabilities of $13,000,000 (market value, $13,000,000). Requirements 1. Compute the cost of goodwill purchased by Patton. 2. Record the purchase of Kit by Patton