Accounting for intangible assets
Le Gormet Company purchased a fast food restaurant for $1,700,000. The fair market values of the assets purchased were as follows. No liabilities were assumed.
|
Equipment |
$420,000 |
|
Land |
300,000 |
|
Building |
650,000 |
|
Franchise (5 year life) |
120,000 |
Required
Calculate the amount of goodwill purchased.