On December 31, year 1, Neal Co. issued 100,000 shares of its $10 par value common stock in exchange for all of Frey Inc.'s outstanding stock. The fair value of Neal's common stock on December 31, year 1, was $19 per share. The carrying amounts and fair values of Frey's assets and liabilities on December 31, year 1, were as follows:

AccountsCarrying amountFair value

Cash$ 240,000$ 240,000

Receivables270,000270,000

Inventory435,000405,000

Property, plant, and equipment 1,305,000 1,440,000

Liabilities(525,000)(525,000)

Net assets$1,725,000$1,830,000

What is the amount of goodwill resulting from the business combination?

Group of answer choices

$70,000

$175,000

$105,000

$ 0