Backstreets Co. recently acquired all of Jungleland Inc.’s net assets in a business acquisition. The cash purchase price was $6.
8 million. Jungleland’s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $1.7 million; buildings, $3.4 million; inventory, $2.2 million; long-term notes payable, for which Backstreets Co. assumes payment responsibilities, $1.5 million. Required: How much goodwill will result from this transaction? (Enter your answers in whole dollars.)
Explanation: Occupational licenses are issued by government agencies are a form of validation that a worker has completed a certain type of education or passed a certain test.