The owner of PeeDee's Pub is retiring and selling the restaurant and all its furnishings for a lump sum price of $1 million. John and Jenn are ECU alums who graduated from the hospitality management program and decide to take on this venture. They borrow the needed funds and immediately hire your accounting firm to manage the books.

Envision a restaurant and what type of assets were purchased for the $1 million. Provide a list of at least 4 - 5 plant assets that could have been included in the purchase price. .

The appraisal on the assets purchased only came in at $650,000. Provide at least two reasons why John and Jenn were willing to pay more than the value of the assets?