Bully Ltd Acquires All the Business Assets and Liabilities of Small

Multiple Choice

Bully Ltd acquires all the business assets and liabilities of Small Ltd for $700,000 cash. The best estimates of the fair market values of the assets and liabilities are:
$$\begin{array} { l r } & \$ \\\text { Receivables } & 180000 \\\text { Payables } & 90000 \\\text { Inventories } & 120000 \\\text { Property } & 210000 \\\text { Equipment } & 80000\end{array}$$
What is the value of goodwill acquired by Bully Ltd?

A) $20 000
B) $110 000
C) $200 000
D) $500 000.