On January 1, Year 2, Neal Co. issued 100,000 shares of its $10 par value common stock in exchange for all of Frey, Inc.’s outstanding stock. The fair value of Neal’s common stock on that date was $19 per share. The carrying amounts and fair values of Frey’s assets and liabilities on January 1, Year 2, were as follows:
Carry Amount of Net Assets: $1,725,000
Fair Value of Net Assets: $1,830,000
What is the amount of goodwill resulting from the business combination?

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.