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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