A company purchased equipment and signed a 7-year installment loan at 9% annual interest. The annual payments equal $9,000. The present value of an annuity for 7 years at 9% is 5.0330. The present value of the loan is:

The present value of the loan is $45,297

Explanation:

Instalment (A)= $9,000.00

PV factor (B)= 5.033

Present value of loan (A x B)

=$ 45,297

the goodwill is $5000

Explanation:

We don't take into account $60,000 because we are going to use the fair value or the reasonable price.

Net assets = Assets-liabilities

Net assets = $98,000 - $23,000

Net assets= $75,000

Burrough Corporation pay $. 80,000 (We don't take into account $3000 paid to another firm)

So the goodwill pay is $80,000-$75000= $5,000