On January 1,2011,Chester Inc Required:
Compute the Value of the Goodwill Account on the Stock

On January 1,2011,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 1,2011,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. $\begin{array} { l r r } & \underline { \text { Book Value } } &\underline {\text { Fair Value} } \\\text { Cash } & \$ 30,000 & \\\text { Accounts Receivable } & 120,000 & \$ 120,000 \\\text { Inventory } & 200,000 & 230,000 \\\text { Land } & 230,000 & 290,000 \\\text { Building (net) } & 450,000 & 600,000 \\\text { Equipment (net) } & 175,000 & 160,000 \\\text { Accounts Payable } & ( 80,000 ) & ( 80,000 ) \\\text { Common Stock, } \$ 1 \text { par } & ( 500,000 ) & \\\text { Paid-in Capital } & ( 350,000 ) & \\\text { Retained Earnings, 12/31/10 } & ( 275,000 ) &\end{array}$
Required:
Compute the value of the Goodwill account on the date of acquisition,1/1/11.