Vasquez Manufacturing Company decided to expand further by purchasing Wasserman Company. The balance sheet of Wasserman Company as of December 31, 2015 was as follows:

An appraisal, agreed to by the parties, indicated that the fair value of the inventory was $370,000 and that the fair value of the plant assets was $1,325,000. The fair value of the receivables is equal to the amount reported on the balance sheet. The agreed purchase price was $2,275,000, and this amount was paid in cash to the previous owners of Wasserman Company.

Required:

Determine the amount of goodwill (if any) implied in the purchase price of $2,275,000.

Assets Cash Receivables Inventory Plant assets (net) Total assets $210,000 550,000 275,000 1,025,000 $2,060,000 Wasserman Company Balance Sheet December 31, 2015 Liabilities and Equities Accounts payable Common stock Retained earnings $375,000 800,000 885,000 Total liabilities and equities $2,060,000