On February 5, Pryor Corporation Paid $1,600,000 for All the Issued

Multiple Choice

On February 5, Pryor Corporation paid $1,600,000 for all the issued and outstanding common stock of Shaw, Inc., in a transaction properly accounted for as an acquisition. The book values and fair values of Shaw's assets and liabilities on February 5 were as follows: What is the amount of goodwill resulting from the business combination?

A) $-0-.
B) $475,000.
C) $85,000.
D) $390,000.