Boggs company is looking to purchase the Grafton Company below is their balance sheet at December 31, 2015.

Boggs Company is looking to purchase the Grafton Company for $150,000 cash. The fair value of their equipment is $35,600, the fair value of their inventory is $20,000, their accounts receivable fair value is $24,500, and they have an unrecorded patent of $15,000. All other book values equal fair value as of January 1, 2015.

Cash $17,500 accounts Payable $5,700

Accounts Receivable 35,000 Notes Payable 22,500

Inventory 15,700

Property, plant, and equipment 25,000 Retained Earnings 65,000

----------------- ---------------

$93,200 $93,200

------------------------- ------------------

Required:

1.) Compute the goodwill associated with the purchase of Grafton.

2.) Prepare the journal entry necessary at January 1, 2015 to

record the purchase of Grafton.

3.) What if the purchase price was $69,000 would any goodwill be

reported?