Pinehollow acquired all of the outstanding shares of Stonebriar by issuing 100,000 shares of $1 par value. The shares have a fair value of $15 per share. Pinehollow also paid $25,000 in direct acquisition costs. Prior to the transaction, the companies had the following balance sheets:

                                                                  Pinehollow               Stonebriar 

Assets

Cash                                                         $150,000                      $50,000

Accounts receivable                                 500,000                      350,000

Inventory                                                    900,000                       600,000

Property, plant and equipment (net)    1,850,000                    900,000

Total assets                                                $3,400,000               $1,900,000

Liabilities and Equity

Current liabilities                                           $300,000                 $100,000

Bonds payable                                               1,000,000                  600,000

Common shares ($1 par)                               300,000                    100,000

Paid-in capital above par                             800,000                       900,000

Retained earnings                                        1,000,000                     200,000

Total liabilities and equity                             $3,400,000             $1,900,000

The fair values of Stonebriar's inventory and plant, property and equipment are $700,000 and $1,000,000, respectively. 

What is the amount of goodwill that will be included in the consolidated balance sheet immediately after the acquisition?

Answer rating: 100% (QA)

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