Montana Company Reports Its Net Assets at a Book Value

Multiple Choice

Montana Company reports its net assets at a book value of $150,000.Recent investigation revealed that the net assets had a market value of $175,000.In addition, Montana had been offered $220,000 for the net assets by a company named Supply.Com.What is the amount of goodwill that should be recorded by Montana Co.?

A) $0
B) $45,000
C) $25,000
D) $70,000
E) $220,000