On March 1, 2006, Pride Corporation Paid $400,000 for All

Multiple Choice

On March 1, 2006, Pride Corporation paid $400,000 for all the outstanding common stock of Supra Company in a business combination, for which out-of-pocket costs may be disregarded. The carrying amounts of Supra's identifiable assets and liabilities on March 1, 2006, follow: On March 1, 2006, the inventories of Supra had a current fair value of $95,000, and the plant assets (net) had a current fair value of $280,000.
The amount recognized as goodwill as a result of the business combination is:

A) $0
B) $25,000
C) $75,000
D) $90,000
E) Some other amount