Companies A and B have been operating separately for five years. Each company has a minimal amount of liabilities and a simple capital structure consisting solely of voting common stock. Company A, in exchange for 40% of its voting stock, acquires 80% of the common stock of Company B. This was a “tax free” stock for stock (type B) exchange for tax purposes. Company B identifiable assets have a total net fair market value of 800

, 000 a

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t b

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580,000. The fair market value of the A stock used in the exchange was 700

, 000.

T h

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100,000 at the date of acquisition. The goodwill on this acquisition would be

a. Zero.

b. $ 60,000

c. $120,000

d. $236,000