On september 1, 2020, concord corporation acquired skysong enterprises for a cash payment of $790,000. at the time of purchase, skysongâs balance sheet showed assets of $630,000, liabilities of $180,000, and ownersâ equity of $450,000. the fair value of skysongâs assets is estimated to be $890,000.compute the amount of goodwill acquired by concord.

$710,000

Explanation:

For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:

The fair value of net asset = The fair value of Skysongâs assets - the fair value of liabilities

= $890,000 - $180,000

= $710,000

And, the acquired value of Skysong Enterprises for cash is $790,000

So, the goodwill would be  

= $790,000 - $710,000

= $80,000