Pratt Company issued 23,000 shares of its $20 par value common stock for the net assets of Sele Company in business combination under which Sele Company will be merged into Pratt Company. On the date of the combination, Pratt Company common stock had a fair value of $31 per share. Balance sheets for Pratt Company and Sele Company immediately prior to the combination were as follows:

Pratt Sele

Current Assets $1,314,000 $192,000

Plant and Equipment (net) 1,725,000 408,000

Total $3,039,000 $600,000

Liabilities $ 900,000 $150,000

Common Stock, $20 par value 1,650,000 240,000

Other Contributed Capital 218,000 60,000

Retained Earnings 271,000 150,000

Total $3,039,000 $600,000

24. If the business combination is treated as an acquisition and Sele Companys net assets have a fair value of $674,400, Pratt Companys balance sheet immediately after the combination will include goodwill of

$30,600.

$38,400.

$33,600.

$56,400.