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

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.