Skipen Corp The Preferred Stock Was Participating and Is Therefore Considered to r

question 108

Essay

Skipen Corp.had the following stockholders' equity accounts:
$$\begin{array} { l r } \text { Preferred stock (8\% cumulative dividend) } & \$ 700,000 \\\text { Common stock } & 1,050,000 \\\text { Additional paid-in capital } & 420,000 \\\text { Retained earnings } & 1,330,000 \\\text { Total } & \$ \underline { \underline { 3,500,000 } }\end{array}$$

The preferred stock was participating and is therefore considered to be equity.Vestin Corp.acquired 90% of this common stock for $2,250,000 and 70% of the preferred stock for $1,120,000.All of the subsidiary's assets and liabilities were determined to have fair values equal to their carrying amounts except for land,which is undervalued by $130,000.
Required:
What amount was attributed to goodwill on the date of acquisition?