On January 4, 2013, Bailey Corp. purchased 40% of the voting common stock of Emery Co., paying $3,000,000. Bailey properly accounts for this investment using the equity method. At the time of the investment, Emery's total stockholders' equity was $5,000,000. Bailey gathered the following information about Emery'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. Emery Co. reported net income of $400,000 for 2013, and paid dividends of $200,000 during that year. What is the amount of the excess of purchase price over book value?

I got 2,000,000 but I am not entirely confident in how I worked the problem out. Thanks in advance!