Robinson Company purchased Franklin Company at a price of $3,860,000. The fair market value of...
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Robinson Company purchased Franklin Company at a price of $3,860,000. The fair market value of the net assets purchased equals $2,810,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end for financial reporting purposes? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,420,000 of goodwill. Should Robinson Company record this goodwill?
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