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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