On December 31, 20X9, Pluto Company acquired 100 percent of Saturn Corporation's common stock for $300,000. Balance sheet information for Saturn just prior to the acquisition is given here: Cash and Receivables$35,000 Inventory 75,000 Land 100,000 Buildings and Equipment (net) 220,000 Total Assets$430,000 Accounts Payable $65,000 Bonds Payable 150,000 Common Stock 100,000 Retained Earnings 115,000 Total Liabilities and Stockholders' Equity$430,000 At the date of the business combination, Saturn's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000.Based on the information provided, what amount of goodwill
will be included in the consolidated balance sheet immediately following the acquisition?
A. $15,000
B. $85,000
C. $30,000
D. $45,000
Answer: D
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