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, what is the amount of goodwill?
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, what is the amount of goodwill?
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