Rommer Company Purchases Daley Inc

Multiple Choice

Rommer Company purchases Daley Inc.for $960,000 cash on January 1,2017.The book value of Daley Company's net assets,as reflected on its December 31,2016 statement of financial position is $740,000.An analysis by Rommer on December 31,2016 indicates that the fair value of Daley's tangible assets exceeded the book value by $70,000,and the fair value of identifiable intangible assets exceeded book value by $35,000.How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.?

A) $70,000
B) $115,000
C) $150,000
D) $220,000