There is an assignment of fair values related to a $3,765,000 acquisition. The fair value of the net identifiable tangible assets is $1,850,000. The purchase included a Customer List with a fair value at $337,000.

A) Assume that the purchase and sale agreement requires the payment of an additional $850,000 if the subsidiary achieves a certain level of earnings. The fair value of that contingent earnings clause in the agreement is estimated to be $216,500. How does this additional information affect computation of goodwill?