On May 1, 2016, the Phil Company paid $1,200,000 for 80% of the outstanding common stock of Sage Corporation in a transaction properly accounted for as an acquisition. The recorded assets and liabilities of Sage Corporation on May 1, 2016, follow: Cash $100,000 Inventory 200,000 Property & equipment (Net of accumulated depreciation) 800,000 Liabilities (160,000) On May 1, 2016, it was determined that the inventory of Sage had a fair value of $220,000 and the property and equipment (net) has a fair value of $1,200,000. What is the amount of goodwill resulting from the business combination? a) $0. b) $112,000. c) $140,000. d) $28,000.