The Dobbin Company pays $1, 575,000 to acquire 100% of the common stock of Gaskin Incorporated. It assumes that Gaskin's plant assets (such as the factory building and land) are undervalued by $50.000. The historical cost of the net assets acquired, excluding goodwill, is equal to $1, 503,000. Gaskin will be held as a division of Dobbin. The following information is available one year after the acquisition of the subsidiary company (i.e., the reporting unit): Dobbin estimated the fair (appraisal) value of the division's net assets (excluding goodwill) at $1, 605, 400 one year after the date of acquisition. Read the requirements. Requirement a. Compute goodwill recorded on the date of acquisition