On september 1, 2014, winans corporation acquired aumont enterprises for a cash payment of $703,290.
at the time of purchase, aumont's balance sheet showed assets of $609,330, liabilities of $208,360, and owners' equity of $400,970.
the fair market value of aumont's assets is estimated to be $821,050.
required:
compute the amount of goodwill acquired by winans.

1 hour working on problems and 3 hours reading

Explanation:

Let's find the solution. From the following statement:

“working on 15 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” we can develop the following expression:

For raising the score: 15 problems = 1 hour reading

Because we do not know how much time each problem takes, She should have spent 1 hour working on problems and 3 hours reading (maximum).

For giving an example, let's consider you spent 20 minutes on each problem, then in 1 hour you would have resolved only 3 problems. That is way, she must spend the maximum of hours reading.