Olthius Ltd

Multiple Choice

Olthius Ltd. purchased 60% of Fredo Ltd. for $1,500,000. At the date of acquisition, the carrying value of Fredo's net identifiable assets was $1,800,000 and the fair value was $2,200,000. What is the amount of the goodwill under the entity method?

A) $(300,000)
B) $120,000
C) $300,000
D) $400,000