The balance sheet of Flo's Restaurant showed total assets of $360,000, liabilities of $104,000 and stockholders' equity of $256,000. An appraiser estimated the fair value of the restaurant assets at $415,000. If Alice Company pays $505,000 cash for the restaurant the amount of goodwill acquired would be:
A) $90,000.
B) $145,000.
C) $194,000.
D) $199,000.

Question

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The Answer of The balance sheet of Flo's Restaurant showed total assets of $360,000, liabilities of $104,000 and stockholders' equity of $256,000. An appraiser estimated the fair value of the restaurant assets at $415,000. If Alice Company pays $505,000 cash for the restaurant the amount of goodwill acquired would be:
A) $90,000.
B) $145,000.
C) $194,000.
D) $199,000.

The Balance Sheet of Flo's Restaurant Showed Total Assets of $360,000