Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $7,800,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions:
- Book Value Fair Value
- Receivables $1,300,000 $1,100,000
- Property Plant and equip 8,000,000 9,400,000
- Intangible assets 200,000 1,200,000
Required:Calculate the amount paid for goodwill.