On January 1, 2013 China Energy paid $4,200,000 to acquire 100% of Red Rockets common shares outstanding. Red Rockets balance sheet as of December 31, 2012 appears below.

	Red Rocket December 31, 2012
Assets:
Cash	$500,000
Inventory	$1,100,000
PPE, gross	$3,600,000
(Accumulated depreciation)	($2,000,000)
Liabilities:
Long-term debt	$1,200,000

China Energy determined that the book value of Red Rockets liabilities equaled their fair value. However, Red Rocket uses the LIFO inventory valuation method, so the fair value of its inventory was $500,000 greater than its book value. In addition, the fair value of Red Rockets PP&E was $1,000,000 greater than its net book value. Finally, Red Rocket had developed several trade names and logos during 2012 that China Energy valued at $400,000. These trade names and logos were not on Red Rockets balance sheet. Use this information to answer the following questions.

How much goodwill will China Energy recognize from its acquisition of Red Rocket?