On July 1, 20X4, Reseda Corporation paid $340,000 for all of Granada Company's outstanding common stock. On that date, the costs and fair values of Granada's recorded assets and liabilities were as follows: Cash and Receivables Inventory Cost $ 50,000 120,000 Fair Value $50,000 Buildings and Equipment (net) Liabilities Net assets 125,000 200,000 240,000 (100,000) $ 270,000 (100,000) $315,000 Based on the preceding information, what amount should be allocated to goodwill in the consolidated balance sheet, prepared after this business combination? Multiple Choice $70,000