Question: 1. Whole Grain Bakery purchases an industrial bread machine for $25,000. In addition to the purchase price, the company makes the following expenditures: freight, $1,500; installation, $3,000; testing, $1,000; and property tax on the machine for the first year, $500. What is the initial cost of the bread machine?
2. Kosher Pickle Company acquires all the outstanding stock of Midwest Produce for $14 million. The fair value of Midwest's assets is $11.3 million. The fair value of Midwest's liabilities is $1.5 million. Calculate the amount paid for goodwill.