1. How calculates the goodwill. (40 points) Inventory....... 58,000 Accounts Receivable 18,000 Warranty Obligations 10,000 Pearson, Capital 18,000 Murphy, Capital......... To adjust book values to market values. 12,000 Cash............ Goodwill....... Solution: Pearson, Capital Murphy, Capital....... Warner, Capital... Apply 30% Mr. Pearson to Goodwill (56,000 x 30%) Apply 20% Mr. Murphy to Goodwill (56,000 x 20%) Apply 15% Mr. Warner to Goodwill (56,000 x 15%). Apply 30% Mr. Pearson to Cash (84,000 x 30%) Apply 20% Mr. Murphy to Cash (84,000 x 20%). Apply 15% Mr. Warner to Cash (84,000 x 15%) Apply 30% Mr. Pearson to Inventory (58,000 x 30%) Apply 20% Mr. Murphy to Inventory (58,000 x 20%) Apply 15% Mr. Warner to Inventory (58,000 x 15%) 84,000 56,000 33,600 22,400 84,000