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Potters has acquired several other companies. Assure that Potters purchased Kettle for $9,000,000 cash. The...

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Potters has acquired several other companies. Assure that Potters purchased Kettle for $9,000,000 cash. The book value of Kettle's assets is $18,000,000 (market value, $20,000,000), and it has liabilities of $16,000,000 (market value, $18,000,000). Requirements Compute the cost of goodwill purchased by Potters. 2. Record the purchase of Kettle by Potters. Requirement 1. Compute the cost of goodwill purchased by Potters. Purchase price to acquire Kettle Market value of Kettle's assets Less: Market value of Kettle's liabilities Less: Market value of Kettle's net assets Goodwill Requirement 2. Record the purchase of Kettle by Potters, Inc. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit

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