On January 1, Tesco Company spent a total of $4,557,000 to acquire control over Blondel Company. This price was based on paying $462,000 for 20 percent of Blondel's preferred stock and $4,095,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Blondel's common stock was $455,000. The fair value of the 80 percent of Blondel's preferred shares not owned by Tesco was $1,848,000. Blondel's stockholders' equity accounts at January 1 were as follows:
|
Preferred stock-9%, $100 par value, cumulative and participating;
10,000 shares outstanding
|
$ |
1,000,000 |
| Common stock-$50 par value; 40,000 shares outstanding |
|
2,000,000 |
| Retained earnings |
|
3,650,000 |
| |
| Total stockholders' equity |
$ |
6,650,000 |
Tesco believes that all of Blondel's accounts approximate their fair values within the company's financial statements. What amount of consolidated goodwill should be recognized?