On April 1, 20X2, Pack Company paid $800,000 for all of Sack Corporation’s issued and outstanding common stock. Sack’s recorded assets and liabilities on April 1, 20X2, were as follows:

On April 1, 20X2, Sack’s inventory was determined to have a fair value of $190,000, and the property and equipment had a fair value of $560,000. What is the amount of goodwill resulting from the business combination?

a. $0

b. $50,000

c. $150,000

d. $180,000

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Cash Inventory Property & Equipment (net of accumulated depreciation of $320,000) Liabilities $ 80,000 240,000 480,000 (180,000)