Question 2 On May 31, 2015, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition:

Current assets	$900,000	Current liabilities	$600,000
Noncurrent assets	2,700,000	Long-term liabilities	500,000
		Stockholder's equity	2,500,000
Total assets	$3,600,000	Total liabilities and stockholder's equity	$3,600,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $2,800,000. At December 31, 2015, Hall reports the following balance sheet information:

Current assets	$800,000
Noncurrent assets (including goodwill recognized in purchase)	2,400,000
Current liabilities	(700,000	)
Long-term liabilities	(500,000	)
Net assets	$2,000,000

It is determined that the fair value of the Hall division is $2,200,000. The recorded amount for Hall's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $200,000 above the carrying value.

(a) Compute the amount of goodwill recognized, if any, on May 31, 2015.

Amount of goodwill

$