Exercise 10-7 (Algo) Goodwill [LO10-1) Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,480,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $8,200,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions: Receivables Property, plant, and equipment Intangible assets Book Value $1,700,000 8,400,000 240,000 Fair Value $1,460,000 9,840,000 1,280,000 Required: Calculate the amount paid for goodwill. Goodwill