On January 1, 2011, Bast Co Fisher Co Acquired All of the Outstanding Preferred Shares for $148,000

Essay

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