how do you calculate the goodwill from the purchase?

Assume the parent company acquires its subsidiary on January 1, 2019, by exchanging 59,000 shares of its $1 par value Common Stock, with a market value on the acquisition date of $30 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation LO2 48. Consolidation at the end of the first year subsequent to dat X of these two companies at the end of the first year. On the acquisition date, all of the subsidiary's individual net assets had fair values that equaled their book values except for the following: PPE assets are undervalued by $120,000 (depreciation $10,000 per year), and the subsidiary has an unrecorded Patent that has a fair value of $320,000 (amor tization $40,000 per year). Any remaining difference between the purchase price and the fair value of the identifiable assets results from expected synergies that are expected to be realized as a result of the business combination. Following are financial statements of the parent and its subsidiary for the year ended December 31, 2019: Parent Subsidiary $5,500,000 (3,800,000) Income statement: Sales. Cost of goods sold Gross profit. ... Equity income. Operating expenses Net income $1,600,000 (950,000) 650,000 1,700,000 150,000 (1,000,000) $ 850,000 (450,000) $ 200,000 Statement of retained earnings: Beginning retained earnings... $2,800,000 Net income 850,000 Dividends ... (160,000) Ending retained earnings. $3,490,000 $ 800,000 200,000 (60,000) $ 940,000 Parent Subsidiary Balance sheet: Assets Cash... $ 300,000 $ 120,000 Accounts receivable.. 700,000 360,000 600,000 Inventory Equity investment.. Property, plant and equipment (PPE), net 940,000 1,860,000 3,400,000 $7,200,000 920,000 $2,000,000 Liabilities and stockholders' equity Accounts payable... Accrued liabilities. Long-term liabilities. Common stock .... APIC...... Retained earnings $ 220,000 340,000 450,000 600,000 2,100,000 3,490,000 $7,200,000 $ 100,000 180,000 430,000 150,000 200,000 940,000 $2,000,000