ACME, Inc. paid $30,000,000 to purchase Arthur, Ltd. At the date of purchase, Arthur, Ltd. had assets with a current market value of $50,000,000 and liabilities with a current market value of $26,000,000.
a. Determine the amount of goodwill ACME, Inc., should report as a result of the purchase.
b. How should ACME, Inc., report the goodwill in its financial statements?