On January 1, 20X4, Red Company Purchased Patriot Shop for $400,000

On January 1, 20X4, Red Company purchased Patriot Shop for $400,000 cash. Red Company received the assets listed below and assumed trade payables (owed by Patriot) amounting to $30,000. $$\begin{array} { | l | r | r | } \hline & \text { Book Value per Patriot's } & \text { Appraised Market Value } \\& \text { Books }\\\hline \text { Inventory } & \$ 300,000 &\$280,000\\\hline \text { Furniture and fixtures } & 60,000 & \$73,000 \\\hline \text { Other assets } & 10,000 & 32,000 \\\hline\end{array}$$ What amount of Goodwill will be recorded in the transaction?

A) $35,000
B) $20,500
C) $50,000
D) $45,000