How much goodwill would be recorded if Torretta Holdings purchases Vikings, assuming its liabilities, for $635,000?

Vikings Inc. reports the following amounts:


Book Value Fair Value

Assets $ 400,000 $ 500,000

Liabilities 45,000 45,000

Net income 25,000


How much goodwill would be recorded if Torretta Holdings purchases Vikings, assuming its liabilities, for $635,000?


A) $255,000.

B) $280,000.

C) $180,000.

D) $100,000.


Answer: C


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