Salem Co. had the following account balances as of December 1, 2020: Assume that Bellington paid cash of $2.8 million and no stock is issued. Also assume that $50,000 is paid in direct combination costs.Required:For Goodwill, determine what balance would be included in a December 1, 2020 consolidation as a result of the acquisition.

Direct Combination Costs

Expenses directly associated with the execution of a business combination, such as legal fees, consulting fees, and other administrative costs.

Goodwill

An intangible asset representing the future economic benefits arising from assets that are not capable of being individually identified and separately recognized.

Acquisition

The process of acquiring control over another corporation through purchase or stock exchange.