On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,800,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows:
Book Value Fair Value
Current assets $ 6,800,000 $ 8,300,000
Property, plant, and equipment 11,800,000 14,800,000
Other assets 1,080,000 1,580,000
Current liabilities 4,800,000 4,800,000
Long-term liabilities 6,800,000 6,300,000
Required:
1. Calculate the amount paid for goodwill.