JetBlue is evaluating the acquisition of 90% common stocks outstanding of Spirit Airlines for $10,000,000.

Other information regarding the acquisition:

Common stocks outstanding of Spirit as of 12/31/2021: 10,000 shares at $1 par value

Percentage of common stocks outstanding to be acquired: 90% equivalent to 9,000 share

Fair market value of Spirit common stocks: $480 per share

Purchase price of 90% common stocks outstanding: $10,000,000 in cash

A comparison of book value and fair market value of the assets and liabilities of Spirit as of December 31, 2021 showed that the fair value of total assets exceeds their book value by $2,264,000.

- Compute the amount of goodwill related to the transaction.

	Book value	Fair value	Variance
Cash & equivalents	1,334,000	1,334,000	-
Investment securities	106,000	183,000	77,000
Receivables	129,000	129,000	-
Inventories	-	-	-
Prepaid expenses	130,000	130,000	-
Other current assets	144,000	144,000	-
Total current assets	1,843,000	1,920,000	77,000
Property & equipment- net	5,857,000	7,924,000	2,067,000
Investments securities	589,000	709,000	120,000
Other assets	251,000	251,000	-
Total assets	8,540,000	10,804,000	2,264,000
Total liabilities	6,417,000	6,417,000	-