On July 1, 20X9, Link Corporation paid $340,000 for all of Tinsel Company's outstanding common stock. On that date, the costs and fair values of Tinsel's recorded assets and liabilities were as follows:

	Cost	Fair Value
Cash and Receivables	$50,000	$50,000
Inventory	120,000	125,000
Buildings and Equipment (net)	200,000	240,000
Liabilities	(100,000)	(100,000)
Net assets	$270,000	$315,000

Based on the preceding information, the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is:

$0.

$25,000.

$70,000.

$45,000.

Based on the preceding information, what amount should be allocated to goodwill in the consolidated balance sheet, prepared after this business combination?

$0

$25,000

$70,000

$45,000