The balance sheet of Flo's Restaurant showed total assets of $600,000, liabilities of $160,000 and stockholders' equity of $440,000. An appraiser estimated the fair value of the restaurant assets at $680,000. If Alice Company pays $770,000 cash for the restaurant the amount of goodwill acquired would be:
A) $90,000.
B) $170,000.
C) $250,000.
D) $230,000.

Question

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The Answer of The balance sheet of Flo's Restaurant showed total assets of $600,000, liabilities of $160,000 and stockholders' equity of $440,000. An appraiser estimated the fair value of the restaurant assets at $680,000. If Alice Company pays $770,000 cash for the restaurant the amount of goodwill acquired would be:
A) $90,000.
B) $170,000.
C) $250,000.
D) $230,000.

The Balance Sheet of Flo's Restaurant Showed Total Assets of $600,000