On January 2,2013,Pilates Inc On January 2,2013,Spinning Anticipated Collecting $185,000 of the Recorded Accounts

Essay

On January 2,2013,Pilates Inc.paid $900,000 for all of the outstanding common stock of Spinning Company,and dissolved Spinning Company.The carrying values for Spinning Company's assets and liabilities are recorded below.
$\begin{array}{ll}\text { Cash } & \$ 200,000 \\\text { Accounts Receivable } & 220,000 \\\text { Copyrights (purchased) } & 400,000 \\\text { Goodwill } & 120,000 \\\text { Liabilities } & \$(180,000) \\\text { Net assets } & \$ 760,000\end{array}$ On January 2,2013,Spinning anticipated collecting $185,000 of the recorded Accounts Receivable.Pilates entered into the acquisition because Spinning had Copyrights that Pilates wished to own,and also unrecorded patents with a fair value of $100,000.
Required:
Calculate the amount of goodwill that will be reported on Pilate's balance sheet as of the date of acquisition.