On April 1, year 1, Parson Corp. purchased 80% of the outstanding
stock of Sloan Corp. for $700,000 cash. Parson determined
that the fair value of the net identifiable assets was
$800,000 on the date of acquisition. The fair value of Sloan’s
stock at date of acquisition was $18 per share. Sloan had a total
of 50,000 shares of stock issued and outstanding prior to the
acquisition. What is the amount of goodwill that should be recorded
by Parson at date of acquisition?