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Problem 6-32 Accounting for intangible assets

Problem 6-32 Accounting for intangible assets
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ACCOUNTING

Survey of Accounting
Second (2nd) Edition
Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay
ACC 201 ACC/201 Accounting 201

Problem 6-32 Accounting for intangible assets

Le Gormet Company purchased a fast-food restaurant for $ 1,700,000. The fair market values of the assets purchased were as follows. No liabilities were assumed.
Equipment $ 420,000
Land 300,000
Building 650,000
Franchise ( 5- year life) 120,000

Required
Calculate the amount of goodwill purchased.

 

FILE: MS WORD

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