Question: On November 1 5 , 2 0 2 3 , Evans Industries acquired Foster Corp for a cash payment of $ 1 , 2 0

On November 15,2023, Evans Industries acquired Foster Corp for a cash payment of $1,200,000. At the purchase date, Foster's balance sheet showed assets of $850,000, liabilities of $250,000, and stockholders' equity of $600,000. The fair value of Foster's assets is estimated to be $975,000. Compute the amount of goodwill recorded by Evans in the acquisition.
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