I need help on calculating Goodwill be ready for follow up questions, a lot of answers to my questions have been wrong on here recently.

On December 31, 2014, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 53,900 newly issued Pacifica common shares ($20 market value, $5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31, 2015. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money.

Immediately prior to the acquisition, the following data for both firms were available:

	Pacifica				Seguros Book Values			Seguros Fair Values
Revenues	$	(1,410,000	)
Expenses		987,000
Net income	$	(423,000	)
Retained earnings, 1/1/14	$	(954,000	)
Net income		(423,000	)
Dividends declared		179,000
Retained earnings, 12/31/14	$	(1,198,000	)
Cash	$	112,000			$	173,000		$	173,000
Receivables and inventory		364,000				115,000			102,900
Property, plant, and equipment		1,800,000				463,000			617,500
Trademarks		347,000				256,000			315,600
Total assets	$	2,623,000			$	1,007,000
Liabilities	$	(550,000	)		$	(275,000	)	$	(275,000	)
Common stock		(400,000	)			(200,000	)
Additional paid-in capital		(475,000	)			(70,000	)
Retained earnings		(1,198,000	)			(462,000	)
Total liabilities and equities	$	(2,623,000	)		$	(1,007,000	)

Note: Parentheses indicate a credit balance.

In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $112,000. Although not yet recorded on its books, Pacifica paid legal fees of $21,800 in connection with the acquisition and $8,300 in stock issue costs.

a.	Prepare Pacifica