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Question - Princess has acquired several other companies. Assume that Princess purchased Kittery for $7,000,000 cash. The book value of Kittery's assets is $13,000,000 ?(market value, $16,000,000?), and it has liabilities of $12,000,000 ?(market value, $12,000,000?).
Requirements -
1. Compute the cost of goodwill purchased by Princess.
2. Record the purchase of Kittery by Princess.
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