On May 1, 2013, the Phil Company Paid $1,200,000 for 80

Multiple Choice

On May 1, 2013, the Phil Company paid $1,200,000 for 80% of the outstanding common stock of Sage Corporation in a transaction properly accounted for as an acquisition.The recorded assets and liabilities of Sage Corporation on May 1, 2013, follow: $\begin{array}{lr}\text { Cash } & \$ 100,000 \\\text { Inventory } & 200,000 \\\text { Property \& equipment (Net of accumul ated depreciation) } & 800,000 \\\text { Liabilities } & (160,000) \end{array}$ On May 1, 2013, it was determined that the inventory of Sage had a fair value of $220,000 and the property and equipment (net) has a fair value of $1,200,000.What is the amount of goodwill resulting from the business combination?

A) $0.
B) $112,000.
C) $140,000.
D) $28,000.