Question - On Jan 1, Year 1, Pungent corporation acquired 75% of Summer Corporation's 200,000 outstanding common shares for 2,850,000. On Jan 1, the book value of Summer's net assets was 3,000,000. Book value equaled fair value for all Summner's assets and liabilities except land, which has a fair value 200,000 greater than book value, and equipment which had a fair value 150,000 greater than book value. On Jan 1, Year 1, Summer had a non-compete agreement with a fair value of 300,000.
Compute the amount of goodwill (show your work) to be reported on Pungent corporation's December 31, Year 1 balance sheet under U.S. GAAP?