Orion Inc. has a 40 percent interest in Petra Company, reported using the equity method, and carried at $25 million. Orion acquires the remaining stock of Petra for $80 million. The fair value of the equity method investment at the date Orion buys the remaining stock is $22 million. The fair value of Petra’s identifiable net assets is $50 million. What amount of goodwill is recognized when the remaining stock is acquired?
Select one:
a.
$52 million
b.
$30 million
c.
$55 million
d.
$0