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The balance sheet of Flo's Restaurant showed total assets of $600,000, liabilities of $160,000 and equity of $540,000. An appraiser estimated the fair value of
The balance sheet of Flo's Restaurant showed total assets of $600,000, liabilities of $160,000 and equity of $540,000. An appraiser estimated the fair value of the restaurant assets at $680,000. If Alice Company pays $770,000 cash for the restaurant the amount of goodwill acquired would be $250,000. Prepare the journal entry to record the purchase of the restaurant.
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