Emily Company reported net income of $140,000 each year and declares an annual cash dividend of $50,000. The company hold net assets of $1,200,000 on January 1, 2022. On that date, Shelen purchased 40 percent of Emily's outstanding common stock for $600,000, which gave it the ability to significantly influence Emily. Requirement: (1) On the purchase date, the excess of Shelen's cost over its proportionate share of Emily's book value was assigned to goodwill. What was the amount of goodwill resulting from this acquisition? (Check: Answer is 120,000)

Emily Company reported net income of $140,000 each year and declares an annual cash dividend of $50,000. The company hold net assets of $1,200,000 on January 1 . 2022. On that date, Shelen purchased 40 percent of Emily's outstanding common stock for $600,000, which gave it the ability to significantly influence Emily. Requirement: (1) On the purchase date, the excess of Shelen's cost over its proportionate share of Emily's book value was assigned to goodwill. What was the amount of goodwill resulting from this acquisition? (Check: Answer is 120,000)