ACC 545, Baker 9e, Chapter 3 study assist, updated 10/7/12,Page2of7 22. On January 1, 20X9, Gold Rush Company acquires 80 percent ownership in California Corporation for$200,000. The fair value of the noncontrolling interest at that time is determined to be $50,000. It reports netassets with a book value of $200,000 and fair value of $230,000. Gold Rush Company reports net assets with abook value of $600,000 and a fair value of $650,000 at that time, excluding its investment in California. Whatwill be the amount of goodwill that would be reported immediately after the combination under currentaccounting practice?A.$50,000B.$30,000C.$40,000D.$20,000 --------------------------------------------------------------------------------------------------------------------On January 3, 20X9, Jane Company acquired 75 percent of Miller Company's outstanding common stock forcash. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of MillerCompany's net assets at the date of acquisition. Selected balance sheet data at December 31, 20X9, are asfollows