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Rye Company purchased all of the assets of Shef Company for $900,000. Rye Company also agreed to assume responsibility for Shef Companys liabilities of $90,000.

Rye Company purchased all of the assets of Shef Company for $900,000. Rye Company also agreed to assume responsibility for Shef Companys liabilities of $90,000. The fair market value of the assets acquired was $810,000. How much goodwill should be recorded in this transaction? Give the journal entry to record this transaction.

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