Business, 18.11.2019 19:31 tatielder4896

Elizabeth pie company has been in business for 50 years and has developed a large group of loyal restaurant customers. giant bakery inc. has made an offer to buy elizabeth pie company for $5,000,000. the book value of elizabeth pie’s recorded assets and liabilities on the date of the offer is $4,300,000 with a fair value of $4,500,000. elizabeth pie also (1) holds a patent for a pie crust fluting machine that the company invented (the patent with a fair value of $300,000 was never recorded by elizabeth pie because it was developed internally) and (2) estimates goodwill from loyal customers to be $310,000 (also never recorded by the company). if elizabeth pie company management accepts giant bakery's offer of $5,000,000, compute the amount of goodwill that giant bakery should record on the date of the purchase.

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Elizabeth pie company has been in business for 50 years and has developed a large group of loyal res...