Acme Corporation is buying all the assets and assuming all the liabilities of Stark Inc. The following information is available for Stark Inc. at the date of the purchase:
Accounts Receivable 300,000
Inventory 100,000
Equipment 200,000
Accumulated Depreciation 80,000
Land 300,000
Accounts payable 40,000
Wages Payable 10,000
Note Payable 100,000
Common Stock 300,000
Retained Earnings 270,000
The inventory is worth $60,000, the land is worth $400,000 and the equipment is worth $300,000. Everything else is worth its book value. Acme Corporation will pay $1,000,000 for Stark Inc. How much of the purchase price will Acme Corporation debit to goodwill?