On July 1, 20X9, Playa Corporation paid $340,000 for all of Seashore Company's outstanding common stock. On that date, the costs and fair values of Seashore's recorded assets and liabilities were as follows: CostFair ValueCash and Receivables$50,000 $50,000 Inventory 120,000 125,000 Buildings and Equipment (net) 200,000 240,000 Liabilities (100,000) (100,000) Net assets$270,000 $315,000 Based on the preceding information, what amount should be allocated to goodwill in the consolidated balance sheet, prepared after this business combination?
A. $70,000
B. $25,000
C. $0
D. $45,000
Answer: B
Business
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