3. On April 1, 20X2, Pack Company paid $800,000 for all of Sack Corporation's issued and outstanding common stock. Sack's recorded assets and liabilities on April 1, 20X2, were as follows:
Cash
Inventory
Property and equipment (net of accumulated
depreciation of $320,000)
Liabilities
$ 80,000
240,000
480,000
(180,000)
On April 1, 20X2, Sack's inventory was determined to have a fair value of $190.000, and the property and equipment had a fair value of $560,000. What is the amount of goodwill resulting from the
business combination?
Multiple Choice
$180.000
$0
$50,000
$150,000