Backstreets Co. recently acquired all of Jungleland, Inc.s net assets in a business acquisition. The cash purchase price was $7.7 million. Jungleland, Inc.s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $2.0 million; buildings, $3.7 million; inventory, $2.5 million; long-term notes payable, for which Backstreets Co. assumes payment responsibilities, $1.8 million.

Required:

How much goodwill will result from this transaction?

Goodwill