Caffeine Company’s 12/31/24 balance sheet reports assets of…
Caffeine Company’s 12/31/24 balance sheet reports assets of $7,000,000 and liabilities of $2,800,000. All of Caffeine’s assets’ book values approximate their fair value, except for land, which has a fair value that is $420,000 higher than its book value. On 12/31/24, Beverage Corporation paid $7,140,000 to acquire Caffeine Co. What amount of goodwill should Beverage Corp. record as a result of this purchase?
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