31. Maverick, Inc. acquires all of the outstanding common stock of Faust Industries for $290,000 cash. On the acquisition date, the subsidiary had Common Stock of $100,000 and Retained Earnings of $80,000. A patent unrecorded by Faust was valued at $70,000. (8 points)

Required:

1. What is the amount of goodwill?
2. Prepare the entry on Mavericks books to record the purchase.
3. Prepare all necessary consolidation entries.