On January 1, 2016, Rabb Corp

Multiple Choice

On January 1, 2016, Rabb Corp.purchased 80% of Sunny Corp.'s $10 par common stock for $975,000.On this date, the carrying amount of Sunny's net assets was $1,000,000.The fair values of Sunny's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) , which were $100,000 in excess of the carrying amount. ​
In the January 1, 2016, consolidated balance sheet, goodwill should be reported at ____.

A) ​$0
B) ​$75,750
C) ​$95,000
D) ​$118,750