The Hermanson and Jones Corporation purchased all of the outstanding common stock of Viacon Corporation for $25,000,000 in cash. The book value of Viacons net assets (assets minus liabilities) was $16,250,000. The fair values of all of Viacons assets and liabilities were equal to their book values with the following exceptions:

Book Value Fair Value

Receivables $3,000,000 $2,850,000

Property, plant, and equipment 10,200,000 11,200,000

Intangible assets 30,000 3,000,000

Required:

Calculate the amount paid for goodwill.