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On January 1, 2018, Bast Co. had a net book value of $2,100,000 as follows:...

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Accounting

On January 1, 2018, Bast Co. had a net book value of $2,100,000 as follows:

Preferred stock, 2,000 shares $70 par value, cumulative, nonparticipating, nonvoting $140,000
Common stock, 22,400 shares $50 par value 1,120,000
Retained earnings 840,000
Total shareholders equity $2,100,000

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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