Grayson Ltd

Multiple Choice

Grayson Ltd. acquired 60% of the outstanding common shares of Goldberg Ltd. for $480,000. At the date of acquisition, Goldberg's shareholders' equity was $625,000. The goodwill at 100% has been determined to be $90,000 under the entity method.
- What is the amount of Goldberg's fair value increments?

A) $54,000
B) $70,000
C) $85,000
D) $121,000