1.On January 1,Year 2,Neal Co.issued 100,000 shares of its $10par value common stock in exchange for all of Frey,Inc's outstanding stock. The fair value of Neal's common stock on that date was $45 per share. The carrying amounts and fair values of Frey's assets and liabilities on January 1, Year 2, were as follows

Carrying AmountFair Value

Cash$240,000$240,000

Receivables270,000270,000

Inventory435,000528,000

PPE1,305,0001,337,000

Liabilities-525,000-488,000

Net assets1,725,000

What is the amount ofgoodwill resulting from the business combination?