Cincinnatus Company paid $5,000,000 to acquire theSproyer Corporation, which became a division of Cincinnatus. The acquisition wasfinalized January 1, 2016. Sproyer reported the following balance sheet at the time of the acquisition: Current assets Noncurrent assets $500,000 4.700.000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $250,000 350,000 4.600.000 $5.200.000 Total assets $5,200,000 At the date of the purchase the fair value of the identifiable net assets ofSproyer was $4,675,000. At December 31, 2016,Sproyer reports the following balance sheet information: Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities Stockholders' Equity DR (CR) 560,000 4,900,000 (450,000) (500,000) (4,500,000) The 12/31/16 fair value of the Sproyer division was determined to be $4,375,000. The recorded amount for Sproyer's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $75,000 above the carrying value. On 12/31/16, Goodwill reported on the balance sheet is Select one: a. $200,000 b. $125,000 c. $275,000 d. $50,000 e. $25,000