In addition, the investor provided to the seller contingent consideration with a fair value of $200 and the investor paid an additional $80 of transaction costs to an unaffiliated third party. The contingent consideration is not a derivative financial instrument. The fair values are measured in accordance with FASB ASC 820: Fair Value Measurement

Assume the net assets transferred from the investee do not qualify as a business, as that term is defined in FASB ASC Master Glossary. At what amount will Goodwill be reported in the financial statements of the acquiring company on January 1, 2019?

Select one:

$0

$20

$180

$60

Acquiring net assets that do not constitute a business Assume that on January 1, 2019 an investor company paid $1,980 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Estimated Fair Value $500 Asset (Liability) Production equipment Factory Licenses 800 700