Lake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilities of Huron. Book values and fair values of acquired assets and liabilities were:
Book Value Fair Value
current assets(net) $130,000 $125,000
Property, Plant, equip(Net) 600,000 750,000
Liabilities 150,000 175,000
Lake would record goodwill of
a. $445,000
B. $250,000
C. $75,000
D. $0