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Rock Solid Manufacturing, Inc., has acquired the net assets

of Jelly Soft Manufacturing, Inc., for $10 million and now needs to address how the acquisition should be recorded on its books for financial reporting purposes and which intangible assets must be amortized and which must be tested for impairment in the future.

Given the information provided below, solve for the goodwill amount then allocate the purchase price of $10 million to the appropriate assets acquired and liabilities assumed in accordance with ASC 805 - Business Combinations. Then identify which assets are tangible and which are intangible. Identify which intangible assets must be amortized and which must be tested for impairment in the future.

Fair Values:

Cash - $800

Accounts receivable - $1,500

Inventory - $850

Equipment - $500

Building - $1,200

Customer relationships (finite life) - $2,300

Patents (finite life) - $600

Trademarks (indefinite life) - $400

Goodwill - (solve for)

Accounts payable - $500

Accrued payroll - $50

Note payable - bank - $950

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