Question: On April 30, 2014, Pound Corp. purchased for cash all 200,000 shares of the outstanding common stock of Shake Corp. for $20 per share. At April 30, 2014, Shake's balance sheet showed net assets with a $3,000,000 book value. On that date, the fair value of Shake's property, plant, and equipment exceeded book value by $300,000.
Required: What amount should Pound report as goodwill on its April 30, 2014, consolidated balance sheet?