Computing Goodwill

Stringtown Company purchased Stansbury Island Manufacturing for $1,800,000$ cash. The carrying

amount and fair value of the assets of Stansbury as of the date of the acquisition are listed below.

In addition, Stansbury had liabilities totaling $400,000$ at the time of the acquisition.

At what amounts will the individual assets of Stansbury be recorded on the books of Stringtown,

the acquiring company?

How will Stringtown account for the liabilities of Stansbury?

How much goodwill will be recorded as part of this acquisition?