Answer:
Amount of goodwill associated with the investment is $500,000
Explanation:
The first step is to calculate the total value of GainsvilleCo:
Total Value of GainsvilleCo = 2,500,000 / 25% = $10,000,000
Book value of GainsvilleCo's underlying assets = $8,000,000
Goodwill = 10,000,000 - 8,000,000 = 2,000,000
Austin Corp Investor share = 25% of 2,000,000 = $500,000