On April 1, 20X1, Paape Company Paid $950,000 for All

On April 1, 20X1, Paape Company paid $950,000 for all the issued and outstanding stock of Simon Corporation. The recorded assets and liabilities of the Simon Corporation on April 1, 20X1, follow: On April 1, 20X1, it was determined that the inventory of Simon had a fair value of $190,000, and the property and equipment (net) had a fair value of $560,000. The entry to distribute the excess of fair value over book value will include:

A) A debit to inventory of $50,000
B) A credit to the investment in Simon Corporation of $620,000
C) A debit to goodwill of $330,000
D) A credit to the investment in Simon Corporation of $330,000