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Find the amount of goodwill to be recorded in the purchase

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Question - ABC Company is being purchased and has the following balance sheet as of the purchase date:

Current assets $200,000

Fixed assets $180,000

Liabilities ($ 90,000)

Equity ($290,000)

The price paid for ABC's net assets is $500,000. The fixed assets have a fair value of $220,000, and the liabilities have a fair value of $110,000. Find the amount of goodwill to be recorded in the purchase?

a. $190,000

b. $170,000

c. $150,000

d. $0

Reference no: EM132740572

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