Johnson paid $325,000 to acquire 100% of Willis Corporation in a statutory merger. Johnson also agreed to pay the shareholders of Willis $0.40 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first three years following the acquisition. Johnson projects that there is a 20% (35%, 45%) probability that the income from continuing operations for the year is $65,000 ($90,000, $120,000 respectively). Johnson uses a discount rate of 7%.

Information for Willis Corporation immediately before the merger was as follows:

Johnson also agreed to pay the shareholders of Willis $0.40 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first year (instead of three years) following the acquisition.

	Book value	Fair value
Current assets	40,000	50,000
Plant assets	120,000	70,000
Liabilities	50,000	45,000

Previously unreported items identified as belonging to Willis:

	Fair value
Contracts under negotiation with potential customers	15,000
In-process research and development	12,000
Skilled workforce	23,000
Recent favorable press reports on Willis	2,000
Proprietary databases	8,000

Determine the goodwill to be reported in this acquisition.