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Lobella Corporation Purchased Melissa Industries on January 1, 2012

Question 111

Essay

Lobella Corporation purchased Melissa Industries on January 1, 2012. At the time of the purchase, the
market value of Melissa's assets is $920,000 and its liabilities total $580,000. Lobella pays $500,000 for Melissa. Calculate the Goodwill and record the journal entry to record the purchase.

Correct Answer:

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Goodwill = $500,000 - ($920,00...

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