Since Yard Apes, Inc., is willing to pay $50,000, they must recognize that the Greener Landscape Group's value includes $20,000 in goodwill. Yard Apes, Inc., makes the following entry to record the purchase of the Greener Landscape Group. Yard Apes, Inc., believes the useful life of the goodwill is five years. Using the straight-line method,
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Five years, $20,000, $50,000, $4,000, Greener Landscape Group, Yard Apes