On January 1, Tesco Company spent a total of $4,332,000 to acquire control over Blondel Company. This price was based on paying $471,000 for 20 percent of Blondel's preferred stock and $3,861,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Blondel's common stock was $429,000. The fair value of the 80 percent of Blondel's preferred shares not owned by Tesco was $1,884,000. Blondel's stockholders' equity accounts at January 1 were as follows:
Preferred stock-9%, $100 par value, cumulative and participating;
10,000 shares outstanding
$ 1,000,000
Common stock-$50 par value; 40,000 shares outstanding 2,000,000
Retained earnings 3,370,000
Total stockholders' equity $ 6,370,000
Tesco believes that all of Blondel's accounts approximate their fair values within the company's financial statements. What amount of consolidated goodwill should be recognized?
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