Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $7,800,000. The fair value of all of Smith's assets and liabilities were equal to their book values with the following exceptions:

Book Value Fair Value

Recievables $1,300,000 $1,100,000

Property, Plant, and Equipment 8,000,000 9,400,000

Intangible assets 200,000 1,200,000

Required:

Calculate the amount paid for goodwill.