1. On January 1, the Richard Company acquired all of the net assets of the Ulmer Company by issuing bonds with a par and fair value of $500,000 and cash of $300,000. The fair values of Ulmer's identifiable net assets were equal to their values book value, except for buildings and equipment, which had a fair value of $120,000 above book value. The balance sheets of the two companies immediately prior to the acquisition were as follows:

richard company	Ulmer Company
Money	$400,000	$150,000
Buildings and Equipment	$700,000	$400,000
Accumulated depreciation	$(300,000)	$(150,000)
Other identifiable assets	$100,000	$200,000
total assets	$ 900,000	$600,000
Passive	$200,000	$100,000
Common actions	$400,000	$300,000
Additional payment in principal	$160,000	$100,000
Retained earnings	$140,000	$100,000
Total Liabilities and Equity	$ 900,000	$600,000

Based on the above information, calculate the amount of Goodwill to be recognized in connection with the merger .