The notes to a recent annual report from Suzies Shoe Corporation indicated that the company acquired another company, Steves Shoes, Inc.

Assume that Suzies acquired Steves Shoes on January 5 of the current year. Suzies acquired the name of the company and all of its assets for $518,000 cash. Suzies did not assume the liabilities. The transaction was closed on January 5 of the current year, at which time the balance sheet of Steves Shoes reflected the following book values. An independent appraiser estimated the following market values for the assets.

Steves Shoes, Inc.
January 5 of the Current Year	Book Value				Market Value
Accounts receivable (net)		$	38,000			$	38,000
Inventory			210,000				183,000
Fixed assets (net)			30,000				50,700
Other assets			4,000				20,000
Total assets		$	282,000
Liabilities		$	64,000
Stockholders equity			218,000
Total liabilities and stockholders equity		$	282,000

Required:

1. Compute the amount of goodwill resulting from the purchase. (Hint: Assets are purchased at market value in conformity with the cost principle.)