Required information [The following information applies to the questions displayed below.] On January 4, David Company acquired all of the net assets (assets and liabilities) of William Company for $125,000 cash. The two companies merged, with David Company surviving. On the date of acquisition, William's balance sheet included the following. Balance Sheet at January 4 Cash Property and equipment (net) Total assets Liabilities Common stock (par $5) Retained earnings Total liabilities and stockholders' equity William Company $ 42,000 70,000 $112,000 $ 6,000 35,000 71,000 $112,000 The property and equipment had a fair value of $69,000. William also owned an internally developed patent with a fair value of $7,000 (thus, not recorded as an asset on William's balance sheet). The book values of the cash and liabilities were equal to their fair values. Required: 1. How much goodwill was involved in this merger? Goodwill