Problem:
On September 1, 2012, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At the time of purchase, Aumont's balance sheet showed assets of $620,000, liabilities of $200,000, and owners' equity of $420,000. The fair value of Aumont's assets is estimated to be $800,000.
Required:
Question: Compute the amount of goodwill acquired by Winans.
Note: Be sure to show how you arrived at your answer.