Arcadia, Incorporated, acquired 100 percent of the voting shares of Bruno Company on January 1, 2023. In exchange, Arcadia paid $357,000 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	$ 78,500	$ 44,500
Receivables	200,500	239,500
Inventory	208,250	254,500
Patents	688,000	781,500
Royalty agreements	689,250	648,000
Equipment (net)	368,000	295,000
Goodwill	?	420,000
Accounts payable	(216,500)	(274,000)
Long-term liabilities	(579,000)	(506,000)

Note: Parentheses indicate a credit balance.

Required:

a. Calculate the goodwill recognized in the combination.