The Charlie Corp

Multiple Choice

The Charlie Corp. buys Dixon Corp., for a total purchase price of $100 million. At the time of the acquisition, Dixon's total identifiable assets had a fair value of $90 million. Their historical cost to Dixon was $80 million. Dixon's identifiable liabilities had a fair value which was the same as their historical cost of $30 million. The goodwill that should be recorded at the time of the purchase is

A) $10 million
B) $20 million
C) $40 million
D) $50 million