Teatree Ltd acquired the net assets and contingent liabilities of Emerald Ltd for a purchase consideration of $3,000,000. Emerald Ltd had total assets of $4,200,000 and total liabilities of $1,500,000, it also faced a lawsuit in which the plaintiffs demanded compensation of $2,000,000. It was estimated that Emerald Ltd had a 70% chance of winning the lawsuit (in which case it would not have to pay the compensation). Calculate the amount of goodwill to be recognised by Teatree Ltd.

Instructions: Provide your answer in the answer box below. The number must be rounded to the nearest whole dollar. Do NOT enter any comma (,) dollar sign ($), space, or any other punctuation. For example, if you think the answer is $10,000.20, you must enter 10000 into the box. Incorrectly formatted answers will not be awarded marks.