Jones Company Acquired Jackson Company for $2,000,000 Cash

Multiple Choice

Jones company acquired Jackson Company for $2,000,000 cash. At that time, the fair value of recorded assets and liabilities was $1,500,000 and $250,000, respectively. Jackson also had unrecorded copyrights valued at $150,000 and its direct costs related to the acquisition were $50,000. What was the amount of the goodwill related to the acquisition?

A) $600,000
B) $650,000
C) $550,000
D) $700,000