On January 1, 2000, Universal Company purchased the following assets and liabilities from Grand Company for $\$ 250,000$ :

\begin{tabular}{|c|c|c|}

\hline & \begin{tabular}{l}

Book \\

Value

\end{tabular} & \begin{tabular}{c}

Fair Market \\

Value

\end{tabular} \\

\hline Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & $\$ 40,000$ & $\$ 50,000$ \\

\hline Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 80,000 & 100,000 \\

\hline Land.$\ldots \ldots$. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 50,000 & 60,000 \\

\hline Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 20,000 & 20,000 \\

\hline Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & $(10,000)$ & $(10,000)$ \\

\hline

\end{tabular}

1. Prepare a journal entry to record the purchase of Grand by Universal.

2. Record amortization of goodwill as of December 31,2000. (Assume a 40 -year amortization period for the goodwill.)