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Gongman Corp. owned the following assets when it came out of a Chapter 11 bankruptcy: Book ValueFair ValueInventory$200,000$160,000Land80,000150,000Buildings300,000340,000Equipment400,000250,000 Gongman Corp. had a fresh start reorganization

Gongman Corp. owned the following assets when it came out of a Chapter 11 bankruptcy:

Book ValueFair ValueInventory$200,000$160,000Land80,000150,000Buildings300,000340,000Equipment400,000250,000

Gongman Corp. had a fresh start reorganization value of $1,000,000.What amount of goodwill should have been recognized in recording the reorganization?

Multiple Choice

$60,000.

$20,000.

$100,000.

$210,000.

$98,000.

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