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SUN acquired 100% of the voting shares of MOON. In exchange, SUN issued 60,000 common shares, with a market value of $22 per share, to the common shareholders of MOON. Both companies have a June 30 year-end, and this transaction occurred on June 30, 2020.

The following are the statements of financial position of the two companies at June 30, 2020 before the transaction took place.

Statements of Financial Position June 30, 2020

	SUN		Moon
	Carrying Value	Fair Values	Carrying Value	Fair Values
Current assets	$ 450,000	$ 400,000	$ 200,000	$ 225,000
Capital assets (net)	14,000,000	12,000,000	1,000,000	950,000
Goodwill	200,000		-
Total	14,650,000		1,200,000
Current liabilities	$ 200,000	$ 100,000	$ 145,000	$ 150,000
Long-term liabilities	600,000	625,000	200,000	180,000
Preferred shares	-		200,000	200,000
Common shares	250,000		250,000
Retained earnings	13,600,000		405,000
	14,650,000		1,200,000

Instructions: Enter all numbers without dollar signs. Round numbers to the nearest whole dollar do not enter any decimals in your number. Use commas properly. If the amount is zero, enter 0, do not leave any answers blank. For example, a properly formatted number is 125,250. Numbers incorrectly formatted with not result in any marks.

Below are the correct answers except goodwill. Can someone show me to how to calculate it? I had gotten $675,000 but It is supposed to be $875,000

	Carrying Value (SUN)	Fair Value (Moon)
Current Assets	450,000	225,000		675,000
Capital Assets	14,000,000	950,000		14,950,000
Goodwill	200,000	0	475,000	675,000
Total	14,650,000	1,175,000		16,300,000
Current Liabilities	200,000	150,000		350,000
Long-term Liabilities	600,000	180,000		780,000
Preferred Shares	0	200,000		200,000
Common Shares	250,000		1,320,000	1,570,000
Retained Earnings	13,600,000			13,600,000
	14,650,000			16,500,000

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