1 Cash 2 Inventory 3 Property, plant, and equipment 4 Patent 5 Marino Company Balance Sheet January 1, 2019 $10,000.00 Accounts payable 30,000.00 Notes payable 200,000.00 20,000.00 Shareholders' equity $260,000.00 $20,000.00 100,000.00 140,000.00 $260,000.00 On January 1, 2019, Paul Company purchased Marino by acquiring all its outstanding shares for $300,000 cash. On that date, the fair value of the inventory was $10,000, and the fair value of the equipment was $230,000. In addition, the fair value of a previously unrecorded customer list was $25,000. For all other amounts, the book value of January 1, 2019, equaled fair value. Required: 1. Compute the goodwill associated with the purchase of Marino. 2. Prepare the journal entry necessary on January 1, 2019, to record the acquisition of Marino. 1. Compute the goodwill associated with the purchase of Marino. $ 2. Prepare the journal entry to record the acquisition of Marino by Paul Company on January 1. General Journal Instructions GENERAL JOURNAL DATE POST. REF. 1 2 ACCOUNT TITLE DEBIT PAGE 1 CREDIT 1 2 3 4 5 6 7 8 9 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT