On December 31, 20X2, Bates Ltd At the Time of Acquisition, Ted's Capital Assets Still Had

On December 31, 20X2, Bates Ltd. purchased 75% of the outstanding common shares of Ted Ltd. for $1,050,000 in cash. The balance sheets of Bates and Ted immediately before the acquisition were as follows (in 000s) : $$\begin{array} { | l | r | r | r | r | } \hline & { \text { Bates } } && { \text { Ted } } \\\hline \text { Cash } & { \begin{array} { c } \text { Vook } \\\text { Value }\end{array} } & \begin{array} { c } \text { Fair } \\\text { Value }\end{array} & \begin{array} { c } \text { Book } \\\text { Value }\end{array} & \begin{array} { c } \text { Fair } \\\text { Value }\end{array} \\\hline \text { Accounts receivable } & \$ 160 & \$ 160 & \$ 100 & \$ 100 \\\hline \text { Inventory } & 420 & 400 & 280 & 280 \\\hline \text { Capital assets } & 600 & 680 & 300 & 350 \\\hline & \underline { 1,820 } & 2,000 & \underline { 1,320 } & 1,620 \\\hline &\underline { \$3000} & & \underline { \$ 2,000 } & \\\hline \\\hline \text { Current liabilities } & \$ 280 & \$ 280 & \$ 160 & \$ 180 \\\hline \text { Long-term liabilities } & 1,100 & 1,100 & 900 & 900 \\\hline \text { Common shares } & 500 & & 500 & \\\hline \text { Retained earnings } & \underline { 1,120 } & & \underline { 440 } & \\\hline & \underline { \$ 3,000 } & & \underline { \$ 2,000 } & \\\hline\end{array}$$ At the time of acquisition, Ted's capital assets still had a remaining useful life of 10 years. Under the entity method, what amount should be allocated to goodwill?

A) $ 67,500
B) $ 90,000
C) $ 97,500
D) $130,000