Raider co recently acquired all of lost arc incs net assets


Question - Raider Co. recently acquired all of Lost Arc, Inc.'s net assets in a business acquisition. The cash purchase price was $7.8 million. Lost Arc, Inc.'s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $2.1 million; buildings, $3.8 million; inventory, $2.6 million; long-term notes payable, for which Raider Co. assumes payment responsibilities, $1.9 million.

Required: How much goodwill will result from this transaction?

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Accounting Basics: Raider co recently acquired all of lost arc incs net assets
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