Goodwill
Response to the following problem:
The Marino Company had the following balance sheet on January 1, 2010:
|
Current assets
|
$ 50,000
|
Current liabilities
|
$ 30,000
|
|
Property, plant, and equipment
|
200,000
|
Noncurrent liabilities
|
100,000
|
|
Intangible assets
|
20,000
|
Stockholders equity
|
140,000
|
|
|
$270,000
|
|
$270,000
|
On January 2, 2010, the Paul Company purchased the Marino Company by acquiring all its outstanding shares for $300,000 cash. On that date the fair value of the current assets was $40,000, and the fair value of the property, plant, and equipment was $240,000. In addition, the fair value of a previously unrecorded intangible asset was $25,000.
Required
Compute the goodwill associated with the purchase of the Marino Company.