DC Advertising paid $250,000 to acquire Red River Herald, a weekly advertising paper. At the time of the acquisition, Red River Herald's balance sheet reported total assets of $140,000 and liabilities of S The fair market value of Red River Herald's assets was $110,000. The fair market value of Red River Herald's liabilities was $80,000. Read the requirements. Requirement 1. How much goodwill did DC Advertising purchase as part of the acquisition of Red River Herald? Purchase price to acquire Red River Herald Market value of Red River Herald's assets Less: Market value of Red River Herald's liabilities 110,000 (80,000) Less: Market value of Red River Herald's net assets Goodwill 250,000 30,000 $ 220,000 Requirement 2. Journalize DC Advertising's acquisition of Red River Herald. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit