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Webber Ltd. purchased the net assets of Sitter Inc. in January 2020 for $9,390,000. Appraisals indicated that the fair values of the assets purchased and
Webber Ltd. purchased the net assets of Sitter Inc. in January 2020 for $9,390,000. Appraisals indicated that the fair values of the assets purchased and liabilities assumed were as follows: Inventory Accounts receivable Prepaid expenses Equipment Building $1,009,000 570,000 71,000 Land Patents Accounts payable Warranty provision Bank loan payable $1,743,000 1,286,000 645,000 478,000 1,926,000 1,857,000 1,667,000 The patent acquired has 10 years remaining in its useful life, but Webber's management determined that it would contribute to the generation of revenues for 8 years, after which it would be obsolete. (a) Determine the amount of goodwill Webber acquired in the purchase. Goodwill $Enter a dollar amount of goodwill
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