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Accounting for intangible assets

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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.

Equipment $320,000
Land $200,000
Building $ 650,000
Franchise (5-year life) $100,000

Required:

Calculate the amount of goodwill purchased.

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Solution Summary

The solution calculates godwill for Mia-Tora Company a fast food restaurant.

Solution Preview

Goodwill will be calculated as follows:

Given Cost of Investment = $ 1,400,000

Fair Value of Assets acquired

Equipment ...

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