On January 1, 2013, Lester Company Purchased 70% of Stork

Multiple Choice

On January 1, 2013, Lester Company purchased 70% of Stork Corporation's $5 par common stock for $600,000.The book value of Stork net assets was $640,000 at that time.The fair value of Stork's identifiable net assets were the same as their book value except for equipment that was $40,000 in excess of the book value.In the January 1, 2013, consolidated balance sheet, goodwill would be reported at

A) $152,000.
B) $177,143.
C) $80,000.
D) $0.