5. On December 31. year 1. Neal Co, issued 100.000 shares of its $10 par value common in exchange for all of Prey Inc.'s outstanding stock. The fair value of Neal's common on December 31. year 1, was S19 per share. The carrying amounts and fair values of Frey assets and liabilities on December 31, year 1, were as follows: Carrying amount Fair value Cash S 240,000 S 240.000 Receivables 270,000 270,000 Inventory 435,000 405,000 Property, plant, and equipment 1,305,000 1.440,000 Liabilities 525,000 525.000 What is the amount of goodwill resulting from the business combination? a. $175,000 b. $105,000 c. $70,000 d. SO 6. On April 1. year 1, Dart Co. paid $620,000 for all the issued and outstanding common stock of Wall Corp. The recorded assets and liabilities of Wall Corp. on April 1, year 1, follow: Cash $ 60,000 Inventory 180,000 Property and equipment (net of accumulated depreciation of $220,000) of $220.000) 320,000 Goodwill 100,000 Liabilities 120,000 On April 1 year 1, Wall's inventory had a fair value of $150,000, and the property and equipment (net) had a fair value of $380,000. What is the amount of goodwill resulting from the business combination? a. S150,000 b. $120,000 c. $50,000 d. $20,000 7. On April 1, year 1, Parson Corp purchased 80% of the outstanding stock of Sloan Corp. for $780,000 cash. Parson determined that the fair value of the net identifiable assets was $800.000 on the date of acquisition while the book value of equity was determine to be $705,000. The fair value of the remaining shares of Sloan's stock at the date of acquisition was $18 per share. Sloan had a total of 50,000 shares of stock issued and outstanding prior to the acquisition. What is the amount of goodwill that should be recorded by Parson at the date of acquisition? a. So b. $160,000 c. $80,000 d. $120,000