Fortuna Company issued 128,000 shares of $1 par stock, with a fair value of $5 per share, for 80% of the outstanding shares of Acappella Company. The firms had the following separate balance sheetspriorto the acquisition:

Assets

Fortuna

Acappella

Current assets

$2,100,000

$960,000

Property, plant, and equipment (net)

4,600,000

1,300,000

Goodwill

240,000

Total assets

$6,700,000

$2,500,000

Liabilities and Stockholders' Equity

Liabilities

$3,000,000

$800,000

Common stock ($1 par)

800,000

Common stock ($5 par)

200,000

Paid-in capital in excess of par

2,200,000

300,000

Retained earnings

700,000

1,200,000

Total liabilities and equity

$6,700,000

$2,500,000

Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which has a fair value of $1,400,000.

Compute goodwill or gain recognized in the consolidated statements (10 points).