BlueSkyCompany's12/31/18balancesheetreportsassetsof$7,000,000andliabilitiesof$2,800,000. All of Blue Sky's assets' book values approximate their fair value, except for land, which has a fair value that is $420,000 greater than its book value. On 12/31/18, Horace Wimp Corporation paid $7,140,000 to acquire Blue Sky. What amount of goodwill should Horace Wimp record as a result of this purchase?

A) $ -0- B) $140,000 C) $2,520,000 D) $2,940,000

1. Blue Sky Company's 12/31/18 balance sheet reports assets of $7,000,000 and liabilities of $2,800,000. All of Blue Sky's assets' book values approximate their fair value, except for land, which has a fair value that is $420,000 greater than its book value. On 12/31/18, Horace Wimp Corporation paid $7,140,000 to acquire Blue Sky. What amount of goodwill should Horace Wimp record as a result of this purchase? A) -0- B) $140,000 C) $2,520,000 D $2,940,000