DeLight Consulting is acquiring another consulting firm, Waterman Consulting for $2.4 million in cash. Although the fair values of Waterman's tangible net assets amount to $400,000, the parties have identified several intangible assets attributable to Waterman, as follows:

Fair Value

Signed customer contracts for consulting projects, with                                    

Expected gross billings of $10 million......................................................      $1,000,000

Skilled work force (Waterman does not use employment contracts)....... 200,000

Well-publicized internet domain name........................................................ 150,000

Expected future business value of having ex-Waterman personnel

Employed in key positions in potential client firms................................... 125,000

Office leases, at rents below current market, five years remaining.......... 100,000

Registered company name and trademark..................................................... 60,000

Proprietary databases of industry data......................................................      50,000

Recent favorable press reports on a Waterman consulting project.......      35,000

Required
a. Identify which of the above items meet the criteria for recognition as assets per FASB ASC Topic 805.
b. Calculate the goodwill to be reported in this acquisition.