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Chapter 10, Problem 4RE
Summary Introduction

Case summary: The person E worked for P&A company as a roadmaster for a railroad in Alaska. He was responsible for safe and effectual maintenance of tracks, marine facilities, and structures. A rock quarry project punctured a high-pressure pipeline running beneath. The person E was held responsible for carelessness and toxicities in water.

To find:Non-awareness of the law as a defensive measure.

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Pro-tech Software acquired all of the outstanding stock of Reliable Software for $17 million. The book value of Reliable's net assets (assets minus liabilities) was $8.6 million. The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.8 million. Calculate the amount paid for goodwill.
Can you explain this general accounting question using accurate calculation methods?
Please provide the correct answer to this general accounting problem using valid calculations.
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