On July 1, 2021, Kroger Inc. acquired Hole Foods for $500M cash and a $250M Note payable to the Bank of New York. The balance sheet on that date for Hole Foods is as follows:

Hole Foods Balance Sheet July 1, 2021 (in thousands)
Cash	$50,000		Accounts Payable	$200,000
Accounts Receivable	90,000		Stockholders Equity	235,000
Inventory	100,000
Land	40,000
Buildings (net)	75,000
Equipment (net)	70,000
Trademarks	10,000			______
Totals	$435,000			$435,000

The recorded amounts (book values) all approximate fair value except for Land (Fair Value is $80M) Inventory (Fair Value is $150M and Trademarks (Fair Value $50M).

Instructions: Answer the following questions for Krogers acquisition of Hole Foods.

1. Determine the amount of Goodwill, if any, that Kroger should recognize.
2. On December 31, 2021, the Fair Value of Krogers Goodwill is estimated to be $300M. Under GAAP, is Kroger required to record any adjusting entries or disclosures. If so, explain.