Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $12,600,000 in cash. The book value of Premium Meats' net assets (assets minus liabilities) was $7,958,000. The book values and fair values of Premium Meats' assets and liabilities were:
- Book Value Fair Value
- Receivables $ 1,400,000 $ 1,300,000
- Property, plant, and equipment 8,000,000 9,400,000
- Intangible assets 208,000 1,200,000
- Liabilities (1,650,000) (2,000,000)
- Net assets $ 7,958,000 $ 9,900,000
Calculate the amount Fresh Cut paid for goodwill?