Question $1(2$ points$)$

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Lantern Tee Inc. $($LTI$)$ purchased $100\%$ of the voting shares of Tip Toe Ltd$.($TIL$)$ for $$4,500,000$ in cash. The net carrying value of the assets and liabilities equals the fair value, with the exception of long$-$term debt that was undervalued by $$50,000.$ At acquisition, the shareholders' equity ff TIL consisted of $$775,000$ in common shares and $$1,300,000$ in retained earnings.

On the date of acquisition, which of the following amounts represents the amount of goodwill that LTI would record on its consolidated statement of financial position?

No goodwill would arise from this acquisition

$$2,475,000$

$$2,425,000$

$$2,375,000$