On January 1,2012,a Parent Company Acquired All of the Stock

Multiple Choice

On January 1,2012,a parent company acquired all of the stock of a subsidiary.The following data is available:
$\begin{array}{ll}&\text { Parent Company } & \text { Subsidiary } \\ \text {Total assets }&\$ 650 & \$ 400 \\ \text { Total liabilities }&\$ 200 & \$ 190 \\ \text { Total stockholders' equity}&\$ 450 & \$ 210\end{array}$
The acquisition by the parent company represents a 100 percent interest in the subsidiary.On January 1,2012,the fair value of the subsidiary's assets and liabilities are equal to their book value.The parent company paid $250 for the 100 percent interest in the subsidiary.What amount of goodwill is implied in the purchase?

A) $0
B) $10
C) $40
D) $200