The Early Corp. buys Farley Corp., for a total purchase price of $250 million. At the time of the acquisition, Farley's total identifiable assets had a fair value of $200 million. Their historical cost to Farley was $180 million. Farley's identifiable liabilities had a fair value which was the same as their historical cost of $120 million. The goodwill that should be recorded at the time of the purchase is
A) $50 million
B) $70 million
C) $170 million
D) $190 million

Question

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The Answer of The Early Corp. buys Farley Corp., for a total purchase price of $250 million. At the time of the acquisition, Farley's total identifiable assets had a fair value of $200 million. Their historical cost to Farley was $180 million. Farley's identifiable liabilities had a fair value which was the same as their historical cost of $120 million. The goodwill that should be recorded at the time of the purchase is
A) $50 million
B) $70 million
C) $170 million
D) $190 million