On January 1,2018,Chester Inc Required:
Compute the Value of Goodwill on the Date of Stock

On January 1,2018,Chester Inc.acquired 100% of Festus Corp.'s outstanding common stock by exchanging 37,500 shares of Chester's $2 par value common voting stock.On January 1,2018,Chester's voting common stock had a fair value of $40 per share.Festus' voting common shares were selling for $6.50 per share.Festus' balances on the acquisition date,just prior to acquisition are listed below.
$$\begin{array} { l r r } & \text { Book Value } & \text { Fair Value } \\\text { Cash } & \$ 30,000& \\\text { Accounts Receivable } & 120,000& \$ 120,000 \\\text { Inventory } & 200,000& 230,000 \\\text { Land } & 230,000& 290,000 \\\text { Building (net) } & 450,000 & 600,000\\\text { Equipment (net) } & 175,000 & 160,000\\\text { Accounts Payable } & ( 80,000 ) & ( 80,000 ) \\\text { Common Stock, \$1 par } & ( 500,000 ) & \\\text { Paid-in Capital } & ( 350,000 ) & \\\text { Retained Earnings, } 1 / 1 / 18 & ( 275,000 ) &\end{array}$$
Required:
Compute the value of Goodwill on the date of acquisition,1/1/18.