On July 1, 2018, Vinson Corporation acquired all of the assets and liabilities of Carley Company for $900,000 cash.

At the time of purchase,

• Carleys balance sheet showed $575,000 in assets and $250,000 in liabilities.
• The fair value of Carleys gross assets was estimated to be $950,000.

Since the purchase, Carley Company has operated as a subsidiary of Vinson Corporation.

At 7/1/2018

	Book Value	Fair value
Assets	575,000	950,000
Liabilities	(250,000)	(250,000)
Net assets	325,000

• Determine the amount of goodwill acquired by Vinson. Label your analysis to explain how you determined the amount of goodwil
• Record the journal entry made by Vinson to reflect the purchase of Carley Company.