Computing Goodwill Stringtown Company purchased Stansbury Island Manufacturing for $1,800,000 cash. The book value and fair value of the assets of Stansbury Island as of the date of the acquisition are listed below:

In addition, Stansbury Island had liabilities totaling $400,000 at the time of the acquisition.
1. At what amounts will the individual assets of Stansbury Island be recorded on the books of Stringtown, the acquiring company?
2. How will Stringtown account for the liabilities of Stansbury Island?
3. How much goodwill will be recorded as part of this acquisition?

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Cash Accounts receivable Inventory. Property, plant, and equipment Totals Book Value Market Value 300,000 $ 30,000 $ 30,000 300,000 350,000 600,000 500,000 900,000 $1,180,000 $1,830,000