PR Company pays $10,000 in cash and issues no-par stock with a fair value of $40,000 to acquire all of SX Corporations net assets. SXs balance sheet at the date of acquisition is as follows:

	SX Corporation
	Book value	Fair value
Current assets	$ 2,000	$ 4,200
Property, plant & equipment, net	10,000	6,000
Identifiable intangible assets	4,000	14,000
Total assets	$16,000
Current liabilities	$ 1,600	$ 2,000
Long-term debt	12,000	11,600
Capital stock	5,000
Retained earnings	8,000
Accumulated other comprehensive income	(1,000)
Treasury stock	(9,600)
Total liabilities & equity	$16,000

PRs consultants find these items that are not reported on SXs balance sheet:

	Fair value
Potential contracts with new customers	$ 8,000
Advanced production technology	4,000
Future cost savings	2,000
Customer lists	1,000

Outside consultants are paid $200 in cash, and registration fees to issue PRs new stock are $400. The question below relates to the entry or entries PR makes to record the acquisition on its books.

Now assume the acquisition cost to PR is $60,000 (not the right answer). Other facts are the same as originally reported. Goodwill reported on this acquisition is

$35,600

$35,800

$44,400

$49,400