On January 2, 2021, Barley Corp. purchased 40% of the voting common stock of Wheat Co., paying $3,000,000. Barley properly accounts for this investment using the equity method. At the time of the investment, Wheat’s total stockholders’ equity was$5,000,000. Barley gathered the following information about Wheat’s assets and liabilities whose book values and fair values differed:

 

	Book Value				Fair Value
Buildings (20-year life)	$	1,000,000			$	1,800,000
Equipment (5-year life)		1,500,000				2,000,000
Franchises (10-year life)		0				700,000

 

Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Wheat Co. reported net income of $400,000 for 2021, and paid dividends of $200,000 during that year.

 

How much goodwill is associated with this investment?