On July 1, 2024, Kroger Inc. acquired Hole Foods for $500M cash and a $250M Note payable to the Bank of New York. The balance sheet on that date for Hole Foods is as follows: Hole Foods Accounts Payable Stockholders' Equity $200,000 235,000 Balance Sheet July 1, 2024 (in thousands) $50,000 90,000 100,000 40,000 75,000 70,000 10,000 $435,000 $435,000 Cash Accounts Receivable Inventory Land Buildings (net) Equipment (net) Trademarks Totals The recorded amounts (book values) all approximate fair value except for Land (Fair Value $80M) Inventory (Fair Value is $150M and Trademarks (Fair Value $50M). Instructions: Answer the following questions for Kroger's acquisition of Hole Foods. Determine the amount of Goodwill, if any, that Kroger should recognize. 2. On December 31, 2024, the Fair Value of Kroger's Goodwill is estimated to be $300M. Under GAAP, is Kroger required to record any adjusting entries or disclosures. If so, what amount would be recorded as an adjustment to Kroger's books.