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On January 1, 2019, Penn Incorporated paid $350,000 for 70% of Sylvania Company's outstanding capital...

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Accounting

On January 1, 2019, Penn Incorporated paid $350,000 for 70% of Sylvania Company's outstanding capital stock. Sylvania reported common stock on that date of $250,000 and retained earnings of $100,000. Plant assets, which had a five-year remaining life, were undervalued in Sylvania's financial records by $10,000. Sylvania also had a patent that was not on the books, but had a market value of $60,000. The patent has a remaining useful life of 10 years. Any remaining fair value/book value differential is allocated to goodwill. Sylvania's net income and dividends paid the first three years that Penn owned them are shown below.
Net Income
2019 $80,000 2020 90,000 2021 60,000
Dividends Paid
$30,000 10,000 20,000
Required:
1) Calculate the amount of goodwill related to this acquisition.

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