Problem
Company B's identifiable net assets on December 31, X1, with a book value of $4,000,000 and 300,000 common shares outstanding. On January 1, X2, Company B newly issued 900,000 ordinary shares, which were fully purchased by Company A for $13,500,000, and non-controlling interests were measured according to the proportion of identifiable net assets. On January 1, X2, except that the patent right was overvalued by $100,000, the fair value of the remaining assets and liabilities of Company B was equal to the book value. The patent right could be used for five years from the acquisition date, and the straight-line method was used for amortization. Company B makes an annual net profit of $250,000 for X2 and declares and distributes a cash dividend of $100,000. Company A adopts the equity method to deal with its investment in Company B. What is the amount of goodwill arising from this combination?