Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,840,000 in cash. The book balue of Smith's net asset was $8,500,000. The fair values of all Smith's assets and liabilites were equal to their book values with the following exceptions.

Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,840,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $8,500,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions: Receivables Property, plant, and equipment Intangible assets Required: Calculate the amount paid for goodwill. Goodwill Book Value $2,000,000 8,700,000 270,000 Fair Value $ 1,730,000 10,170,000 1,340,000