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On July 1, 2016, James Co. paid $425,000 for all of the stock of Princeton, Inc. On that date, book values of Princeton's assets and

On July 1, 2016, James Co. paid $425,000 for all of the stock of Princeton, Inc. On that date, book values of Princeton's assets and liabilities were $400,000 and $105,000, respectively. The fair values of the assets and liabilities were $420,000 and $85,000 , respectively. What is the amount of goodwill at date of acquisition? Please show solutions.

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