On January 1, Coldwater Company has a net book value of $2,300,000 as follows:

2,050 shares of preferred stock; par value $100 per share; cumulative, nonparticipating, nonvoting; call value $108 per share	$	205,000
37,500 shares of common stock; par value $40 per share		1,500,000
Retained earnings		595,000
Total	$	2,300,000

Westmont Company acquires all outstanding preferred shares for $218,800 and 60 percent of the common stock for $1,319,160. The acquisition-date fair value of the noncontrolling interest in Coldwaters common stock was $879,440. Westmont believed that one of Coldwaters buildings, with a 12-year remaining life, was undervalued by $52,800 on the companys financial records.

What amount of consolidated goodwill would be recognized from this acquisition?

Multiple Choice

• $61,000.

• $59,800.

• $64,600.

• $58,600.