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

Essay

Skipen Corp. had the following stockholders' equity accounts: $\begin{array}{lr}\text { Preferred stock ( } 8 \% \text { cumulative dividend) } & \$ 700,000 \\\text { Common stock } & 1,050,000 \\\text { Additional paid-in capital } & 420,000 \\\text { Retained earnings } & 1,330,000\\\text { Total }&\$3,500,000\end{array}$ 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 book values except for land which is undervalued by $130,000.
Required:
What amount was attributed to goodwill on the date of acquisition?