Thomas Inc. had the following stockholders' equity accounts as of January 1, 2018: Preferred stock - $90 par value, nonvoting and nonparticipating; 9% cumulative dividend$2,700,000 Common stock - $25 par value 5,600,000 Retained earnings 14,000,000 ??Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2018, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years. During 2018, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.?What is the amount of goodwill resulting from this acquisition?
What will be an ideal response?
| Consideration transferred for 100% interest in common stock | $ | 20,656,000 | |
| Noncontrolling interest in preferred stock (100%): | 3,060,000 | ||
| Total fair value of Thomas 1/1/18 | $ | 23,716,000 | |
| Carrying amount | 22,300,000 | ||
| Excess acquisition-date fair value over book value | 1,416,000 | ||
| Assigned to database | 656,000 | ||
| Goodwill | $ | 760,0000 | |
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