Recording Goodwill upon Acquisition On January 1, 2020, the balance sheet of Naperville Company (a sole proprietorship) was as follows. Assets Liabilities Accounts receivable (net of allowance) $60,000 Current $38,000 Inventory 90,000 Noncurrent 80,000 $118,000 Plant and equipment (net of depreciation) 200,000 Equity Land 30,000 Owners' equity 262,000 Total $380,000 Total liabilities and owners' equity $380,000 On January 1, 2020, Chicago Corporation purchased all of the assets and assumed all of the liabilities listed on the above balance sheet for $290,000 cash. The assets, on date of purchase, were valued by Chicago Corporation as follows: accounts receivable (net), $50,000; inventory, $85,000; plant and equipment (net), $200,000; and land, $45,000. In addition, Chicago Corporation estimated purchased intangible assets of $2,000 for customer list and $8,000 for trade names (both previously unrecorded). The liabilities were valued at their carrying amounts. Required a. Compute the amount of goodwill included in the purchase price paid by Chicago Corporation. $ b. Provide the entry that Chicago Corporation should make to record the purchase of Naperville Company. Account Name Dr. Cr. Accounts Receivable (net) Inventory Plant and Equipment (net) Land Intangible Asset-Customer List Intangible Asset-Trade names Goodwill Current Liabilities Noncurrent Liabilities Cash c. What is the minimum amount of goodwill that Chicago Corporation can amortize at the end of 2020