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Hill, Inc., obtains control over Loring, Inc., on July 1. The book value and fair value of Loring's accounts on that date (prior to creating the combination) follow, along with the book value of Hill's accounts:

Hill Loring Loring
Book Values Book Values Fair Values
Revenues $ (268,250) $ (139,750)
Expenses 175,500 101,000
Retained earnings, 1/1 (161,500) (177,000)
Cash and receivables 70,250 53,500 $ 53,500
Inventory 237,500 173,500 210,500
Patented technology (net) 255,750 144,250 165,650
Land 447,000 226,500 257,700
Buildings and equip (net) 124,500 82,500 82,500
Liabilities (570,750) (364,500) (338,500)
Common stock (300,000) (70,000)
Additional paid-in capital (10,000) (30,000)
Note: Parentheses indicate a credit balance.

Assume that Hill issues 10,500 shares of common stock with a $5 par value and a $42 fair value to obtain all of Loring's outstanding stock. How much goodwill should be recognized?


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