Reference no: EM132515347

Question - On January 1, Tesco Company spent a total of $5,014,000 to acquire control over Blondel Company. This price was based on paying $442,000 for 20 percent of Blondel's preferred stock and $4,572,000 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 $508,000. The fair value of the 80 percent of Blondel's preferred shares not owned by Tesco was $1,768,000. Blondel's stockholders' equity accounts at January 1 were as follows:

Pref 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 $3,800,000

Total Sotckholders' equity $6,800,000

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?