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Company X is considering a M&A option with Company Y. Company Y's Balance Sheet reflects that its assets Net Book Value is $200,000. The assets

Company X is considering a M&A option with Company Y. Company Y's Balance Sheet reflects that its assets Net Book Value is $200,000. The assets are in prestigious neighbourhoods and could have a market value of up to 5 times more. Company X is considering to invest nothing more that $1.2 million in Company Y. What would be the anticipated amount of the goodwill?

a. $1 million

b. $200,000

c. $0

a. $200,000

b. $0

c. $1m

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