The Fair Value of the Assets and Liabilities for Zane's

question 72

Multiple Choice

The fair value of the assets and liabilities for Zane's Restaurant were $450,000 and $160,000, respectively. If Reiner Company pays $325,000 cash for the restaurant and assumes its existing liabilities, what amount of goodwill would Reiner record?

• A) $25,000.
• B) $35,000.
• C) $55,000.
• D) $125,000.

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