On October 1, 20X3, Pole Corporation paid $450,000 for all of Stick Company's outstanding common stock. On that date, the book values and fair values of Stick's recorded assets and liabilities were as follows: Book ValueFair ValueCash and Receivables$75,000  $75,000  Inventory 155,000   160,000  Buildings and Equipment (net) 260,000   320,000  Liabilities (150,000)  (150,000) Net Assets$340,000  $405,000  Based on the preceding information, the differential implicit in this acquisition is

A. $0.
B. $65,000.
C. $45,000.
D. $110,000.


Answer: D

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