Public Equity Corporation acquired Lenore Company through an exchange of common shares. All of Lenore's assets and liabilities were immediately transferred to Public Equity. Public's common stock was trading at $20 per share at the time of exchange. Following selected information is also available. Public Equity Before acquisition After acquisition Par value of shares outstanding$200,000 $250,000 Additional paid-in capital$350,000 $550,000 Based on the preceding information, what is the fair value of Lenore's net assets, if goodwill of $56,000 is recorded?
A. $244,000
B. $300,000
C. $194,000
D. $306,000
Answer: C
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