On January 1,2018,Bast Co Fisher Coacquired All of the Outstanding Preferred Shares for $148,000 and as Follows

question 109

Essay

On January 1,2018,Bast Co.had a net book value of $2,100,000 as follows:
$\begin{array}{|l|r|}\hline \begin{array}{l}\text { Preferred stock, } \\\text { cumulative, nonparticipating, nonvoting }\end{array} & \$ 140,000 \\\hline \text { Common stock, 22,400 shares } \$ 50 \text { par value } & 1,120,000 \\\hline \text { Retained earnings } & \underline{840,000} \\\hline \text { Total shareholders' equity } & \$ 2,100,000 \\\hline\end{array}$

Fisher Co.acquired all of the outstanding preferred shares for $148,000 and 60% of the common stock for $1,281,000.Fisher believed that one of Bast's buildings,with a twelve-year life,was undervalued on the company's financial records by $70,000.
Required:
What is the amount of goodwill to be recognized from this purchase?

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Definitions:

Sensory and Motor Nerves

Nerves that are responsible for transmitting sensory information to the brain and spinal cord, and for conveying motor commands to muscles.

Adrenal Glands

Small glands located on top of each kidney that produce hormones such as adrenaline and cortisol, which help control heart rate, blood pressure, and other important bodily functions.

Cortisol

A steroid hormone produced by the adrenal glands, often released in response to stress and a key component in the body's stress response system.

Melatonin

A hormone produced by the pineal gland that helps regulate sleep-wake cycles.