Question - Salem Co. had the following account balances as of December 1, 2010:
Inventory $720,000
Land $600,000
Building net (valued at $1,200,000) $1,080,000
Common Stock ($10 par value) $96,000
Retained earnings, December 1, 2010 $1,320,000
Revenue $720,000
Expenses $600,000
Bellington Inc. transferred $1.7 million in cash and 12,000 shares of its newly issued $30 par value common stock (valued at $90 per share) to acquire all of Salem's outstanding common stock. Assume that Bellington paid cash of $2.8 million. No stock is issued. An additional $50,000 is paid in direct combination costs.
Required: For Goodwill, determine what balance would be included in a December 1, 2010 consolidation.