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Princess has acquired several other companies. Assume that Princess purchased Kelleher for $12,000,000 cash. The...

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Accounting

Princess has acquired several other companies. Assume that Princess purchased Kelleher for $12,000,000 cash. The book value of Kelleher's assets is $15,000,000(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 Kelleher by Princess.
Requirement 1. Compute the cost of goodwill purchased by Princess.
Purchase price to acquire Kelleher
Market value of Kelleher's assets
Less: Market value of Kelleher's liabilities
Less: Market value of Kelleher's net assets
Goodwill
Requirement 2. Record the purchase of Kelleher by Princess, Inc. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
\table[[Date,Accounts and Explanation,Debit,Credit],[,v,,],[,,,],[,,,],[,,,],[,,,]]
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