Compute the amount of goodwill recognized, if any, on July 31, 2020. (If answer is zero, do not leave answer field blank. Enter 0 for the amount.)

The amount of goodwill _______________

On July 31, 2020, Sheridan Company paid $2,750,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Sheridan. Conchita reported the following balance sheet at the time of the acquisition. Current assets Noncurrent assets Total assets $740,000 2,450,000 $3,190,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $510,000 410,000 2,270,000 $3,190,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,500,000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2020, Conchita reports the following balance sheet information. Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities Net assets $470,000 2,360,000 (620,000) (420,000) $1,790,000 Finally, it is determined that the fair value of the Conchita Division is $1,850,000