Joyful sound music company purchased the net assets

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Joyful Sound Music Company purchased the net assets (i.e.,assets minus liabilities) of Metrodome Company for $845,000.Metrodome is a retailer of music,instruments, and related items. Its net assets have been carried on its own books at atotal of $530,000. An appraisal of  all of Metrodome's assets and liabilities revealed a netfair market value of $783,000. Joyful is willing to pay extra because of Metrodome's very loyalretail customers, most of whom have dealt exclusively with the company for more than 30 years. (a)What is the amount of goodwill that Joyful should record at acquisition of Metrodome? (b) What might cause the purchased goodwill in this situation to become impaired?

Reference no: EM13611794

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