On July 31 . 2014, Mason Company purchased for $4,000,000 cash all of the outstanding common stock of Turquoise Company when Turquoise's balance sheet showed net assets of $3,200,000 . Turquoise's assets and liabilities had fair values different from the book values as follows: Book Value Fair Value Property, plant, and equipment, net ........................... $5,000,000 $5,750,000 Other assets
.................... 500,000 0 Long-term debt .................. 3,000,000 2,800,000 As a result of the transaction, what amount will be shown as goodwill in the July 31 . 2014, consolidated balance sheet of Mason Company and its wholly owned subsidiary, Turquoise Company?
a. $350,000
b. $250,000
c. $750,000
d. $800,000
A
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