Goodwill results from the purchase of one firm by another for a price that is greater than the fair value of the net assets acquired. On January 1, 2017, Blue Grass Co. purchased Red Grass Co. for $2,400,000 when the net assets were value at $2,000,000. Goodwill will be tested annually for impairment. Assume that after the first year there was an impairment of $30,000. Compute the value of goodwill to be recorded on the books of Blue Grass Co. upon purchase of the business. $30,000 $2,060,000 $400,000 $430,000