On May 31, 2016, Columbanus Company paid $2,000,000 to acquire all of the common stock of Mistor Corporation, which became a division of Columbanus. Mistor reported the following balance sheet at the time of the acquisition: Current assets Noncurrent assets Total assets $400,000 1.800.000 $2.200.000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $400,000 200.000 1.600.000 S2.200.000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Mistor was $1,675.000. At December 31, 2016, Mistor reports the following balance sheet information: Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities Stockholders' Equity DR (CR) $600,000 1.700,000 (500,000) (300,000) (1,500,000) The 12/31/16 recorded amount for Mistor's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $75,000 above the carrying value. Assume the 12/31/16 fair value of the Mistor division is $1,375,000. On 5/31/16, Columbanus Company recorded Goodwill of Select one: a. $325,000 b. $400,000 c. $1,475,000 d. $200,000 e. $75,000