Lee Corporation Purchases Presley Company's Entire Business for $2,700,000

Lee Corporation purchases Presley Company's entire business for $2,700,000. The fair market value of Presley's net identifiable assets is $2,400,000.

A) Presley should record goodwill of $300,000.
B) Lee paid $300,000 for goodwill generated by Presley.
C) Lee should charge the $300,000 excess paid for Presley Company directly to expense.
D) Presley should record amortization over a period not to exceed 40 years.