Cowan Ltd Acquired 100% of the Net Assets of Opus Co

Multiple Choice

Cowan Ltd. acquired 100% of the net assets of Opus Co. for $1,120,000. At the time of acquisition, Opus had the following: $\begin{array}{|l|r|r|} \hline& \text { Book Value } & \text { Fair value } \\\hline \text { Inventory } & \$ 2,800,000 & \$ 2,800,000 \\\hline \text { Land } & 168,000 & 238,000 \\\hline \text { Liabilities } & 1,960,000 & 1,960,000 \\\hline\end{array}$ In this acquisition, how much goodwill has been created?

A) $0
B) 42,000
C) $70,000
D) $112,000