Eastern purchased the entire business of Western including all its assets and liabilities for $1,800,000 on December 31, 2021. Below is information related to the two companies at that date:

	Eastern				Western
Fair value of assets	$	3,150,000			$	2,400,000
Fair value of liabilities		1,575,000				900,000
Reported assets		2,400,000				1,950,000
Reported liabilities		1,500,000				750,000
Net Income for the year		180,000				150,000

How much goodwill did Eastern pay for acquiring Western?

Multiple Choice

• $450,000.

• $900,000.

• $300,000.

• $600,000.