Ms. Lorraine sells her business to Mr. Katchy. An independent appraiser indicates that the business...
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Accounting
Ms. Lorraine sells her business to Mr. Katchy.
An independent appraiser indicates that the business assets other than goodwill, have the following FMV:
Inventory: $ 100,000
Building: $1,000,000
Land: $ 400,000
After negotiations, Ms. Lorraine and Mr. Katchy agree on a sale price of $2,000,000
Task: Allocate the purchase price among the asset, and the goodwill.
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