Company T has assets and liabilities with fair market values of $20,000 and $4,000, respectively; the
respective book values are $18,000 and $3,000. Diversified Corp. purchases Company T for $25,000.
(a) Before calculating goodwill, what value did Diversified assign to Company T?
(b) How much 'did Diversified pay for goodwill?
(c) Prepare an entry for the purchase.