At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $55 million. At the time of purchase, the carrying value of Sky Tech's net assets was $80 million. The fair value of Sky Tech's depreciable assets was $20 million in excess of their book value. For this year, Sky Tech reported a net income of $80 million and declared and paid $20 million in dividends. The amount of purchased goodwill is:

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Multiple Choice

• $75 million.

• $25 million.

• $35 million.

• None of the above are correct.