Page & Seed Scenario

Multiple Choice

Page & Seed scenario:
Page Company purchased an 80% interest in the common stock of the Seed Company for $600,000 on January 1, 20X4, when Seed Company had the following stockholders' equity:
Any excess of cost over book value on the common stock purchase was attributed to goodwill. Page does not hold any of Seed's preferred stock. Seed had net income of $40,000 during 20X4 and paid no dividends.
-Refer to Page and Seed. The preferred stock is 1 year in arrears on January 1, 20X4. The goodwill that will appear on the consolidated balance sheet prepared on January 1, 20X4, is ____.

A) $80,000
B) $88,000
C) $210,000
D) $168,000