Hamilton Company$$s balance sheet on January $1,2019,$ was as follows:

Hamilton Company

Balance Sheet

January $1,2019$

$1$

Cash

$$30,000\mathrm{.}00$

Accounts payable

$$20,000\mathrm{.}00$

$2$

Accounts receivable

$80,000\mathrm{.}00$

Bonds payable

$120,000\mathrm{.}00$

$3$

Marketable securities $($short$-$term$)$

$40,000\mathrm{.}00$

Pension liability

$50,000\mathrm{.}00$

$4$

Inventory

$100,000\mathrm{.}00$

Common stock

$200,000\mathrm{.}00$

$5$

Property, plant, and equipment $($net$)$

$200,000\mathrm{.}00$

Retained earnings

$60,000\mathrm{.}00$

$6$

$$450,000\mathrm{.}00$

$$450,000\mathrm{.}00$

Korbel Company is considering purchasing Hamilton $($a privately held company$)$ and discovers the following about Hamilton:

a$.$ No allowance for doubtful accounts has been established. A $$10,000$ allowance is considered appropriate.

b$.$ Marketable securities are valued at cost$.$ The current market value is $$60,000.$

c$.$ The LIFO inventory method is used. The FIFO inventory of $$140,000$ would be used if the company is acquired.

d$.$ Land, included in property, plant, and equipment, which is recorded at its cost of $$50,000,$ is worth $$120,000.$ The remaining property, plant, and equipment is worth $10\%$ more than its depreciated cost.

e$.$ The company has an unrecorded trademark that is worth $$70,000.$

f$.$ The company$$s bonds are currently trading for $$130,000.$

g$.$ The pension liability is understated by $$40,000.$

Required:

$1.$ Compute the amount of goodwill if Korbel agrees to pay $$500,000$ cash for Hamilton.

$2.$ Next Level What are the reasons that the book value of Hamilton$$s net identifiable assets differ from their market value?

$3.$ Prepare the journal entry to record the acquisition on the books of Korbel assuming Hamilton is liquidated.

$4.$ If Korbel agrees to pay only $$400,000$ cash, how much goodwill exists?

$5.$ If Korbel pays only $$400,000$ cash, prepare the journal entry to record the acquisition on its books, assuming Hamilton is liquidated.