On July 31, 2014, Mexico Company paid $3,088,700 to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico.
Conchita reported the following balance sheet at the time of the acquisition.
Current assets $862,300Current liabilities $663,200 Noncurrent assets 2,778,200 Long-term liabilities 523,200 Total assets $3,640,500 Stockholders' equity 2,454,100 Total liabilities and stockholders' equity $3,640,500 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,786,200. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2014,
Conchita reports the following balance sheet information.
Current assets $455,500 Non-current assets (including goodwill recognized in purchase) 2,452,300 Current liabilities (718,400 ) Long-term liabilities (554,300 ) Net assets $1,635,100 It is determined that the fair value of the Conchita Division is $1,856,000. The recorded amount for Conchita's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value $155,600 above the carrying value.Compute the amount of goodwill recognized, if any, on July 31, 2014.