1. Vasquez Manufacturing Company decided to expand further by purchasing Wasserman Company. The statement of financial position of Wasserman Company as of December 31, 2015 was as follows:

Wasserman Company

Statement of Financial Position

December 31, 2015

Assets Equity and Liabilities

Plant assets (net) $2,050,000 Share capital-ordinary $ 1,600,000

Inventory 550,000 Retained earnings 1770,000

Receivables 1,100,000 Accounts payable 750,000

Cash 420,000

Total assets $4,120,000 Total equity and liabilities $4,120,000

An appraisal, agreed to by the parties, indicated that the fair value of the inventory was $700,000 and the fair value of the plant assets was $2,250,000. The fair value of the receivables is equal to the amount reported on the statement of financial position. The agreed purchase price was $4,190,000, and this amount was paid in cash to the previous owners of Wasserman Company.

Instructions

Determine the amount of goodwill (if any) implied in the purchase price of $4,190,000. Show calculations.