On January 1, 2011, Bast Co. had a net book value of $2,100,000 as follows: 
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?
Definitions:
Civil Law
A legal system based on codified laws and principles, as opposed to common law, which is based on precedent and judicial decisions.
Codified System
A system where laws and regulations are organized and written down into a systematic code or collection.
Common Law
A body of legal precedents derived from judicial decisions, as opposed to statutes or written laws enacted by legislature.
Judge-made Law
Law established through decisions made by judges in court cases, also known as common law or case law.
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