On November 30, year 1, Parlor, Inc. purchased for cash at
$15 per share all 250,000 shares of the outstanding common
stock of Shaw Co. At November 30, year 1, Shaw’s balance sheet
showed a carrying amount of net assets of $3,000,000. At that
date, the fair value of Shaw’s property, plant and equipment exceeded
its carrying amount by $400,000. In its November 30,
year 1 consolidated balance sheet, what amount should Parlor
report as goodwill?