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:

401k Plans

Retirement savings plans sponsored by employers that allow employees to save and invest a piece of their paycheck before taxes are taken out.

403b Plans

Tax-deferred retirement savings plan available for public education organizations, some non-profit employers, and self-employed ministers.

Tax Penalty

An additional charge imposed by the tax authority on a taxpayer for not meeting tax obligations or for errors in a tax return.

Taxable Withdrawals

Withdrawals from an investment account that are subject to income tax, usually from accounts that offer tax advantages at the time of deposit or investment.