PC Company purchased all of the common stock of Silicon Company by issuing 2,000,000 shares of its $0.50 par value common stock, with a market value of $25/share. PC Company incurred $150,000 in registration and issuing costs, and $100,000 in consulting and legal fees, paid in cash. The book value of Silicon Company at the date of acquisition was as follows:

Capital stock	$ 4,000,000
Retained deficit	(1,500,000)
Accumulated other comprehensive income	400,000
Total book value	$ 2,900,000

The carrying values of Silicons reported assets and liabilities approximated fair value at the date of acquisition, but it has $3,000,000 in customer lists, not reported on its balance sheet.