On 1 June 2015 Blender Company Acquired for $300 000

Multiple Choice

On 1 June 2015 Blender Company acquired for $300 000 cash the business of Madcap Inc. The carrying amount of Madcap Inc's net assets at the time of the acquisition was $255 000 while independent valuers calculated their fair value at $275 000. Blender Company should debit 'Goodwill' for the amount of:

A) $0.
B) $15 000.
C) $25 000.
D) $45 000.