1. On December 30, Parker, Inc. acquired a 100% ownership interest in Creature Corporation at a cost of $310,000. Parker determined that Creatures inventory was undervalued by $20,000 on the acquisition date. Parker had retained earnings totaling $215,000, common stock totaling $60,000, total assets of $600,000, and total liabilities of $325,000 just prior to the consolidation. Creatures net assets had a book value of $250,000 at the time of acquisition, with $50,000 reported as common stock and $200,000 reported as retained earnings.

How much will Parker report as goodwill on its consolidated balance sheet immediately after the acquisition?

A. $40,000

B. $800,000

C. $320,000

D. $30,000

E. $50,000