=+3. Acquirer Company bought Servile Company for $5.000,000 on January 2.

2004. The fair market value of the individual net assets was $3.500,000. In succeeding years, the fair market value of Servile's costs and goodwill were as follows:

Cost of Servile's Fair Market Net Assets and Year Value of Servile Goodwill 2005

$7,000,000

$7,100,000 2006 7,300,000 6,700,000 2007 8,000,000 9.300,000 Required:

a. What amount of goodwill should be recognized as a result of the acquisition of Servile in 2004?