Marino Company had the following balance sheet on January 1, 2019:

Marino Company

Balance Sheet

January 1, 2019

1 Cash $10,000.00 --Accounts payable $20,000.00

2 Inventory 30,000.00 --Notes payable 100,000.00

3 Property, plant, and equipment 200,000.00

4 Patent 20,000.00 ----Shareholders equity 140,000.00

5 $260,000.00. $260,000.00

On January 1, 2019, Paul Company purchased Marino by acquiring all its outstanding shares for $300,000 cash. On that date, the fair value of the inventory was $10,000, and the fair value of the equipment was $230,000. In addition, the fair value of a previously unrecorded customer list was $25,000. For all other amounts, the book value of January 1, 2019, equaled fair value.

Required:

1. Compute the goodwill associated with the purchase of Marino.

2. Prepare the journal entry necessary on January 1, 2019, to record the acquisition of Marino.