A company has the following expenditures during the year.
Advertising $ 100,000
Employee training 80,000
Customer outreach and consultation 50,000
The company believes that these efforts have increased the fair value of the entire company by $325,000. How much goodwill can the company recognize at the end of the year associated with these expenditures?
A) $0.
B) $80,000.
C) $230,000.
D) $325,000.
Answer: A
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