American Outfitters purchases a company, Canadian Outfitters, for a price of $2M. American Outfitters assets have a

Fantastic news! We've Found the answer you've been seeking!

Question:

American Outfitters purchases a company, Canadian Outfitters, for a price of $2M. American Outfitters assets have a market value of $3M. Canadian Outfitters assets have a market value of $1.5M.Canadian Outfitters liabilities have a market value of $30,000.Canadian Outfitters liabilities have a book value of $25,000. American Outfitters liabilities have a market value of $32,000.What is the amount of Goodwill that results from the purchase of American Outfitters of Canadian Outfitters?

$530,000
$532,000
$0 as goodwill cannot arise from this type of purchase
$0 as goodwill only arises when a company purchases a company in the same line of business as its own and this is unknown in this case
$32,000