Montana Company Reports Its Net Assets at a Book Value

question 31

Multiple Choice

Montana Company reports its net assets at a book value of $150,000.Recent investigation revealed that the net assets had a market value of $175,000.In addition, Montana had been offered $220,000 for the net assets by a company named Supply.Com.What is the amount of goodwill that should be recorded by Montana Co.?

• A)$0
• B)$45,000
• C)$25,000
• D)$70,000
• E)$220,000