(Answered) Question - on april 1 20x1 paape company paid 950000 for

Accounting

Question - 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?

$120,000

$300,000

$230,000

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