Goodwill The Marino Company had the following balance sheet on January 1, 2007:
|
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, 2007 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.