Instructions Pleasantville Company had the following balance sheet on January 1, Pleasantville Company Balance Sheet January 1 $57,000.00 Oh 25000000 Inventory Property. Plant, and Equipment Patent 3175,000.00 Accounts Payable 15700000 Notes Payable 200,000.00 Mortgage Payable 25.000,00 Retained Earnings 150,000.00 100.000,00 150,000.00 100,000.00 Instructions Property. Plant and Equipment Patent 200,000.00 Mortgage Payable 25,000 DO Retained Earnings $557,000.00 5557,000.00 On January 2 Cats Company came to an agreement to purchase Pleasantville by acquiring all of its outstanding shares for $575,000 in cash. On that date in time, the fair value their inventory was $150,000, and the fair value of the equipment was $225,000. The book value equals the fair value for all other accounts listed, Required: 1. Compute the poodwill associated with the purchase of Pleasantville 2. Prepare the journal entry necessary at January 2 to record the acquisition of Pleasantville