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Financial Accounting

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Amount of Goodwill Recorded for Purchase

FINACT-TWQ7OQ

F. Company purchased T. Company for \$7,000,000 cash. At the time of purchase, T. Company's assets had a fair market value of \$8,000,000 and the liabilities had a fair market value of \$1,300,000. At the time of purchase, T. Company's assets had a book value of \$4,000,000 and the liabilities had a book value of \$1,000,000.

What amount of goodwill is recorded by F. Company as part of the purchase?