On July 1, Preston Enterprises purchased for cash at $30 per…
On July 1, Preston Enterprises purchased for cash at $30 per share all 250,000 shares of the outstanding common stock of Sylvestre Company, a business entity. Sylvestre reported net assets on that date with a carrying amount of $6,000,000. This amount reflected acquisition-date fair values except for Property, Plant and Equipment, which had a fair value that exceeded its carrying amount by $800,000. In its July 1 consolidated balance sheet, what amount should Preston report as Goodwill?