Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 23

Southwest is a private not-for-profit organization. It acquires Northeast, another private not-for-profit organization. The acquisition value is $980,000. Northeast has two assets (and no liabilities): equipment with a book value of $120,000 but a fair value of $150,000 and a building with a book value of $500,000 but a fair value of $800,000. Northeast is expected to receive a lot of support through donations and contributions. However, it is not expected to be predominantly supported by contributions and investment income. After the combination, what. should be reported for goodwill
A) $-0-.
B) $30,000.
C) $60,000.
D) $360,000.