On January 1,2011,Bast Co Fisher Coacquired All of the Outstanding Preferred Shares for $148,000 and as Follows

question 16

Essay

On January 1,2011,Bast Co.had a net book value of $2,100,000 as follows: $$\begin{array} { | l | c | } \hline \begin{array} { l } \text { Preferred stock, } 2,000 \text { shares } \$ 70 \text { par value, } \\\text { cumulative, nonparticipating, nonvoting }\end{array} & \$ 140,000 \\\hline \text { Common stock, } 22,400 \text { shares } \$ 50 \text { par value } & 1,120,000 \\\hline \text { Retained earnings } & \underline { 840,000 } \\\hline \text { Total shareholders' equity } &\underline{\underline{\$ 2.100,000 }} \\\hline & \\\hline\end{array}$$
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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