Domo Company pays $$1,599,700$ to acquire $100\%$ of the common stock of Hattie Incorporated. It assumes that Hattie's plant assets $($such as the factory building and land$)$ are undervalued by $$42,000.$ The historical cost of the net assets acquired, excluding goodwill, is equal to $$1,505,000.$ Hattie will be held as a division of Dorno. The following information is available $1$ year after the acquisition of the subsidiary company $($i$.$e$,$ the reporting unit$)$:

$($Cick the icon to view the balance sheet.$)$

Dorno estimated the fair $($appraisal$)$ value of the division's net assets $($excluding goodwill$)1$ year after the date of acquisition at $$1,609,000.$

Read the requirements.

Requirement a$.$ Compute goodwill recorded on the date of acquisition.

Account

Amount

Acquisition cost

$$

$$

$$

$$

Goodwill

Data table

$\backslash$table$[[$Description$,,$Debit,Credit$],[$Cash$,$$$,202,000,],[$Inventory$,,304,000,],[$Property$,$ plant, and equipment, net,,$1,469,300,],[$Goodwill$,,52,700,*],[$Current liabilities,,$$,400,100],[$Common stock $-$ no par,,,$340,900],[$Retained earnings,,,$1,287,000$