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Part of the acquisition of tri town

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When one media company buys another, goodwill is often the most costly asset. Decca Publishing paid $240,000 to acquire Tri Town Daily, a weekly advertising paper. At the time of the acquisition, Tri Town Daily's balance sheet reported total assets of $160,000 and liabilities of $80,000. The fair market value of Tri Town Daily's assets was $120,000. Requirements R1. How much goodwill did Decca Publishing purchase as part of the acquisition of Tri Town Daily? R2. Journalize Decca Publishing's acquisition of Tri Town Daily.

Reference no: EM13973212

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