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Sano Company purchases Maeda Company for $1,600,000 cash on January 1, 2021. The book value...

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Accounting

Sano Company purchases Maeda Company for $1,600,000 cash on January 1, 2021. The book value of Maeda Company's net assets, as reflected on its December 31, 2020 balance sheet is $1,240,000. An analysis by Sano on December 31, 2020, indicates that the fair value of Maeda's tangible assets exceeded the book value by $120,000, and the fair value of identifiable intangible assets exceeded the book value by $90,000.

How much goodwill should be recognized by Sano Company when recording the purchase of Maeda Company?

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