Kappa Inc. acquires Lambda Ltd. for $220,000,000 in cash and accounts for its investment as a merger. Lambda’s balance sheet at the date of acquisition is as follows:

Assets	Amount	Liabilities and Equity	Amount
Current assets	$20,000,000	Liabilities	$105,000,000
Property, net	$120,000,000	Equity	$35,000,000
Total assets	$140,000,000	Total liabilities and equity	$140,000,000

The fair value of Lambda’s current assets is $2,000,000 less than book value. The fair value of its property is $38,000,000 less than book value. The book value of its liabilities approximates fair value. There are no unreported assets or liabilities.

Requirement: How much goodwill does Kappa report for this acquisition?