Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 6

Amie, Inc., has 100,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 30,000 of Amie's shares on January 1, 2010, for $120,000 when Amie's net assets had a total fair value of $350,000. On July 1, 2013, Prairie agreed to buy an additional 60,000 shares of Amie from a single stockholder for $6 per share. Although Amie's shares were selling in the $5 range around July 1, 2013, Prairie forecasted that obtaining control of Amie would produce significant revenue synergies to justify the premium price paid. If Amie's net identifiable assets had a fair value of $500,000 at July 1, 2013, how much goodwill should Prairie report in its
postcombination consolidated balance sheet
a. $60,000.
b. $90,000.
c. $100,000.
d. $202.