Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 43

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.