On January 1, 2019, Pippen Co. issued 50,000 shares of its $1 par value common stock (market price per share was $10) and transfer $250,000 in cash to purchase all of the outstanding shares of common stock of Scottie Co.

As part of the acquisition agreement (1) Pippen contracted with the selling Scottie Co. stockholders to pay (on May 1, 2020) additional $40,000 in cash if 2019 consolidated revenue is greater than $900,000. On January 1, 2019, the fair value of this provision is $25,000 and (2) Pippen was obligated to replace the share based payment awards held by Scottie's employee. On January 1, 2019, Pippen issued to Scottie's employees 10,000 share options with a total fair value of $20,000. Pippen determined that 40% of the replacement award is attributable to the pre-combination services that have already been rendered by the employees, while the remaining 60% of the replacement award is attributable services to be rendered by the employees over the next 4 years.

The following costs in relation to the acquisition were incurred and paid by Pippen on 1/1/2019:

• Printer's and underwriting fees in relation to the common stock issued of $5,000 and
• Finder's and financial due diligence fees of $7,000.

The book values of Scottie assets and liabilities equal their fair values except for

• Inventory - fair value of $40,000
• Equipment - fair value of $90,000
• Customer list - fair value of $160,000
• Notes payable - fair value of $80,000

4) Calculate the goodwill recognized on the acquisition day.