On January 1, 2014, Shelley Company Paid $650,000 Cash for 100

Multiple Choice

On January 1, 2014, Shelley Company paid $650,000 cash for 100% of the outstanding common stock of SCD Company. SCD's stockholders equity on the date of acquisition was $500,000. The current fair value of SCD's plant and equipment was $100,000 in excess of the equipment's book value. If the fair value and book value are the same for SCD's remaining assets and liabilities, what was the amount of goodwill acquired by Shelley Company?

A) $150,000.
B) $40,000.
C) $50,000.
D) $250,000.