Pawan Corporation acquires all of Sesa Company at an acquisition cost of

Pawan Corporation acquires all of Sesa Company at an acquisition cost of $80,000,000 in cash. Sesa's reported assets and liabilities are as follows:

	Book Value Dr (Cr)	Fair Value Dr (Cr)
Current assets	$   5,000,000	$ 7,000,000
Land, buildings, and equipment (net)	60,000,000	40,000,000
Liabilities	(40,000,000)	(39,000,000)

Pawan determines that Sesa has the following identifiable intangible assets, not reported on its balance sheet:

	Fair Value
Favorable leaseholds	$ 4,000,000
In-process research & development	3,000,000
Advertising contracts	5,000,000

Pawan also discovers that Sesa has not properly recorded the expected liability from a settled lawsuit, currently estimated at $6,000,000.

Pawan records goodwill of:

	A.	$54,000,000
	B.	$60,000,000
	C.	$69,000,000
	D.	$66,000,000