On April 1, 20X1, Paape Company paid $950,000 for all the issued and outstanding stock of Simon Corporation. The recorded assets and liabilities of the Simon Corporation on April 1, 20X1, follow:
Cash .......................................... $ 80,000
Inventory ..................................... 240,000
Property and equipment (net of accumulated depreciation of $320,000) .......480, 000
Liabilities ...............................(180,000)
On April 1, 20X1, it was determined that the inventory of Simon had a fair value of $190,000, and the property and equipment (net) had a fair value of $560,000.
What is the amount of goodwill resulting from the business combination? (Points: 10)
$0 $120,000 $300,000 $230,000