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Princess has acquired several other companies. Assume that Princess purchased Kettle for $11,000,000 cash. The...

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Accounting

Princess has acquired several other companies. Assume that Princess purchased Kettle for $11,000,000 cash. The book value of Kettle's assets is $12,000,000(market value, $16,000,000), and it has liabilities of $14,000,000(market value, $14,000,000).
Requirements
Compute the cost of goodwill purchased by Princess.
Record the purchase of Kettle by Princess.
Requirement 1. Compute the cost of goodwill purchased by Princess.
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
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