Question - Marino Company had the following balance sheet on January 1, 2013:
|
Cash
|
10,000
|
Accounts Payable
|
30,000
|
|
Inventory
|
40,000
|
Notes Payable
|
100,000
|
|
Property, plant, and equipment
|
200,000
|
|
|
|
Patent
|
20,000
|
Shareholders' equity
|
140,000
|
|
270,000
|
270,000
|
|
|
On January 2, 2013, Paul Company purchased Marino by acquiring all its outstanding shares for $300,000 cash. On that date, the fair value of the inventory was $30,000, and the fair value of the equipment was $240,000. In addition, the fair value of a previously unrecorded customer list was $25,000. For all other amounts, the book value of January 1, 2013, equaled fair value.
Compute the goodwill associated with the purchase of Marino.