Haviland, Inc Plant and Equipment with a Book Value of $100,000 Will

Haviland, Inc. is about to emerge from Chapter 11 reorganization, and qualifies for fresh start reporting. Its reported assets are as follows:
$$\begin{array} { l r } \text { Cash } & \$ 50,000 \\\text { Inventories } & 250,000 \\\text { Plant and equipment } & \underline{900,000} \\\text { Total assets } & \underline{\$ 1,200,000} \\\end{array}$$ Plant and equipment with a book value of $100,000 will be sold for an estimated $175,000. The remaining reported assets will be used in operations. The estimated fair market values of the remaining assets are as follows:
$$\begin{array} { l r } \text { Cash } & \$ 50,000 \\\text { Inventories } & 200,000 \\\text { Plant and equipment } & \underline{500,000} \\\text { Total reported assets } & \underline{ \$ 750,000} \\\end{array}$$ There are no previously unreported identifiable assets. Operations are expected to generate a net cash flow of $150,000 per year for the next 10 years. A discount rate of 5% is deemed appropriate.
Required
a. Calculate Haviland's reorganization value. The present value of an annuity of $1 for 10 years at 5% is $7.7217.
b. Calculate the amount of goodwill, if any, that will be reported on the emerging company's balance sheet.