Arcadia, Incorporated, acquired $100$ percent of the voting shares of Bruno Company on January $1,2023.$ In exchange, Arcadia paid $$387,250$ in cash and issued $100,000$ shares of its own $$1$ par value common stock. On this date, Arcadia's stock had a fair value of $$15$ per share. The combination is a statutory merger with Bruno subsequently dissolved as a legal corporation. Bruno$$s assets and liabilities are assigned to a new reporting unit.

The following shows fair values for the Bruno reporting unit for January $1,2023,$ along with respective carrying amounts on December $31,2024.$

Bruno Reporting Unit Fair Values $1/1/23$ Carrying Amounts $12/31/24$

Cash $ $95,000$ $ $50,000$

Receivables $193,000245,000$

Inventory $217,500260,000$

Patents $638,000741,000$

Royalty agreements $599,250570,000$

Equipment $($net$)354,000267,000$

Goodwill $?516,000$

Accounts payable $(161,000)(219,000)$

Long$-$term liabilities $(564,500)(486,000)$

Arcadia, Incorporated, acquired $100$ percent of the voting shares of Bruno Company on January $1,2023.$ In exchange,

Arcadia paid $$387,250$ in cash and issued $100,000$ shares of its own $$1$ par value common stock. On this date,

Arcadia's stock had a fair value of $$15$ per share. The combination is a statutory merger with Bruno subsequently

dissolved as a legal corporation. Bruno's assets and liabilities are assigned to a new reporting unit.

The following shows fair values for the Bruno reporting unit for January $1,2023,$ along with respective carrying

amounts on December $31,2024.$

Note: Parentheses indicate a credit balance.

Required:

Note: Use the cells $A2$ to $C23$ from the above information to complete this question.

a$.$ Calculate the goodwill recognized in the combination.