calculate goodwill- Pick Corp. ("Pick") has been operating since 2008. It is now December 31, 2018, and Pick is about to prepare consolidated financial statements for Pick and its subsidiary, Stitch, Corp. ("Stitch"). Pick acquired 80 percent of the outstanding common stock of Stitch on January 1, 2018, for $1,750,000. On the acquisition date, Stitch reported owners' equity of $1,375,000. The fair value of the shares of Stitch stock not acquired by Pick was $240,000. The fair values of the net assets of Stitch are equal to their book values except for the following: Account Dr (Cr) Book Value Fair Value Identifiable AAP Inventories $ 108,000 $ 138,000 Land 240,000 200,000 Patents 100,000 160,000 Long-term notes payable (70,000) (90,00