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cousin vinnie resorts purchases paws inn for 825 000 the value of goodwill amounts t 610344

Paws Inn is for sale. The following facts pertain:

Book Value

Fair Market Value

Current assets

$100,000

$170,000

Plant assets

400,000

700,000

Intangible assets

60,000

90,000

Liabilities

300,000

300,000

Cousin Vinnie Resorts purchases Paws Inn for $825,000. The value of goodwill amounts to:

  1. $30,000.
  2. $165,000.
  3. $300,000.
  4. $370,000.

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