Adam Hamilton, who recently won a major prize in a lottery, left his coaching job to invest in a business of his own. He found what he believed was an ideal business for his background, Glenside Gym, which had been earning an average profit of $70000 per year over the last 4 years.

Adam has a copy of Glenside’s current balance sheet, which discloses the following: 

	GLENSIDE GYM Balance Sheet
	CURRENT ASSETS Cash at bank Inventory				$  20000   90000		$110000
	NON-CURRENT ASSETS Land Building Less: Accumulated depreciation		$170000    46000		50000 124000
	Equipment Less: Accumulated depreciation		136000   42000		94000		268000
	TOTAL ASSETS						$378000
	LIABILITIES Accounts payable Mortgage payable						$  20000 100000
							120000
	EQUITY Carl Ingford, Capital						258000
	TOTAL LIABILITIES AND EQUITY						$378000

Adam Hamilton and Channelle Eberhart (the owner of Glenside Gym) agree that the carrying amount of assets and liabilities are equal to their fair values with the exception of land, which has a fair value of $80000, and inventory, which has a fair value of $85000. Adam proposes to purchase the assets (except cash) and to assume the liabilities of Glenside Gym.

Required

A. Determine the fair value of the identifiable assets and liabilities of Glenside Gym.

B. Assuming that Glen is prepared to pay $310000 cash for Glenside Gym, determine the goodwill figure. Provide reasons Adam would be prepared to pay this amount.

C. Prepare general journal entries to acquire the business of Glenside Gym.