The Balance Sheet of Ernie's Restaurant Showed Total Assets of $300,000

Multiple Choice

The balance sheet of Ernie's Restaurant showed total assets of $300,000, liabilities of $80,000 and equity of $270,000. An appraiser estimated the market value of the restaurant assets at $340,000. If Bert Company pays $385,000 cash for the restaurant the amount of goodwill purchased would be:

A) $45,000.
B) $85,000.
C) $115,000.
D) $125,000.