Mia-Tora Company purchased a fast-food resturant for $1,400,000. the fair market values of the assets purchased were as follows. No liabilities were assumed.
Building $ 650,000
Franchise (5-year life) $100,000
Calculate the amount of goodwill purchased.© BrainMass Inc. brainmass.com March 4, 2021, 9:49 pm ad1c9bdddf
Goodwill will be calculated as follows:
Given Cost of Investment = $ 1,400,000
Fair Value of Assets acquired
The solution calculates godwill for Mia-Tora Company a fast food restaurant.