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Question - Our Corporation purchased all of the outstanding stock of Their Corporation, paying $700,000 cash. Our Corporation assumed all of the liabilities. Fair values of the acquired assets and liabilities were:
Fair Values:
Current assets (net) $150,000
Property, Plant & Eqmt (net) 450,000
Liabilities 450,000
What is Goodwill? Also, what is the journal entry to record the transaction? Please show your work.
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