Answer:
$400,000
Explanation:
The computation of goodwill is shown below:-
Fair value of assets = $3,200,000
Fair value of liabilities = $1,200,000
Cash paid for southern = $2,400,000
Acquired Net assets = $2,000,000
Net assets acquired = Fair value of assets - Fair value of liabilities
= $3,200,000 - $1,200,000
= $2,000,000
Goodwill acquired = Cash paid for southern - Acquired Net assets
= $2,400,000 - $2,000,000
= $400,000
