On May 31, 2016, Columbanus Company paid $2,000,000 to acquire all of the common stock of Mistor Corporation, which became a division of Columbanus. Mistor reported the following balance sheet at the time of the acquisition:
It was determined at the date of the purchase that the fair value of the identifiable net assets of Mistor was $1,875,000. At December 31, 2016, Mistor reports the following balance sheet information:
The recorded amount for Mistor's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $75,000 above the carrying value. Assume the 12/31/16 fair value of the Mistor division is $1,375,000.
On 12/31/16, Goodwill reported on the balance sheet is: