Hoover Company Acquired Burgess Company for $1,200,000 Cash

Multiple Choice

Hoover Company acquired Burgess Company for $1,200,000 cash. The fair value of Burgess' assets was $1,040,000, and the company had liabilities of $60,000. How much goodwill did Hoover Company acquire in the purchase?

A) $220,000
B) $1,040,000
C) $1,200,000
D) $60,000