26) On May 1, 2016, the Phil Company paid $1,200,000 for 80% of the outstanding common stock of Sage Corporation in a transaction properly accounted for as an acquisition. The recorded assets and liabilities of Sage Corporation on May 1, 2016, follow:

Cash	$100,000
Inventory	200,000
Property & equipment (Net of accumulated depreciation)	800,000
Liabilities	(160,000)

On May 1, 2016, it was determined that the inventory of Sage had a fair value of $220,000 and the property and equipment (net) has a fair value of $1,200,000. What is the amount of goodwill resulting from the business combination?

a) $0.

b) $112,000.

c) $140,000.

d) $28,000.

I know the answer is C but can you step by step me to that answer?