At the start of the current year, SBC Corp, purchased 25% OF Sky Tech Inc. for $48 million.

At the time of purchase, the carrying value of Sky Tech’s net asset was $76 million. The fair value of Sky Tech’ depreciable assets was $12 million is excess of their book value. For this year, Sky Tech reported a net income of $75 million and declared and paid $12 million in dividends.

The amount of purchased goodwill is:

$26 million.

$36 million.

$60 million.

None of the above is correct.