Lake Incorporated purchased all of the outstanding stock of Huron Company paying $850,000 cash. Lake assumed all of the liabilities. Book values and fair values of acquired assets and liabilities were:

	Book Value	Fair Value
Current assets (net)	$130,000	$125,000
Property, plant, equip. (net)	600,000	750,000
Liabilities	175,000	175,000

Lake would record goodwill of:

$0.

$850,000.

$345,000.

$150,000.