The Hoover Company acquired the Burgess Company for $1,200,000 cash. The fair value of Burgess's assets was $1,040,000, and the company had liabilities of $60,000. Which of the following choices would reflect the purchase on Hoover's financial statements?
a.
Burgess assets.................................1,040,000
Goodwill..........................................220,000
Cash.............................................1,200,000
Burgess liabilities.................................60,000
b.
Burgess assets.................................1,040,000
Burgess liabilities.................................60,000
Goodwill.........................................100,000
Cash............................................1,200,000
c.
Burgess assets.................................1,040,000
Goodwill..........................................160,000
Cash.............................................1,200,000
d.
Burgess assets.................................1,200,000
Cash.............................................1,200,000