Metal Works, Inc. has $3.8 million in net working capital, no long-term debt, and fixed assets with a book value of $32.4 million and a market value of $36.1 million. All Metal Industrial Products is buying Metal Works, Inc. for $42.5 million in cash. The acquisition will be recorded using the purchase accounting method. What is the amount of goodwill that All Metal Industrial will record on the balance sheet as a result of this acquisition?
A) $0
B) $1.5 million
C) $2.6 million
D) $6.3 million
E) $6.4 million

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The Answer of Metal Works, Inc. has $3.8 million in net working capital, no long-term debt, and fixed assets with a book value of $32.4 million and a market value of $36.1 million. All Metal Industrial Products is buying Metal Works, Inc. for $42.5 million in cash. The acquisition will be recorded using the purchase accounting method. What is the amount of goodwill that All Metal Industrial will record on the balance sheet as a result of this acquisition?
A) $0
B) $1.5 million
C) $2.6 million
D) $6.3 million
E) $6.4 million