Kmart Company purchased all of the ordinary share capital of Skoda Co during 2009. On this date the fair value of the net asset of Skoda Co was $15 million. The term of purchase agreement provided for immediate cash consideration of $10 million and further $10 million deferred for 12months. Kmart Company paid its advisor $1 million in costs directly related to the acquisition. Kmart company cost of capital is 6%. What goodwill arises on the acquisition?