Price Company issued 8,740 shares of its $20 par value common stock for the net assets of Sims Company in a business combination under which Sims Company will be merged into Price Company. On the date of the combination, Price Company common stock had a fair value of $30 per share. Balance sheets for Price Company and Sims Company immediately prior to the combination were:

		Price		Sims
Current assets		$460,540		$61,810
Plant and equipment (net)		529,190		140,940
Total		$989,730		$202,750
Liabilities		$274,100		$53,300
Common stock, $20 par value		558,200		88,000
Other contributed capital		72,870		20,750
Retained earnings		84,560		40,700
Total		$989,730		$202,750

(a)

If the business combination is treated as a purchase and Sims Companys net assets have a fair value of $209,574, Price Companys balance sheet immediately after the combination will include goodwill of

$60,226.

$52,626.

$54,226.

$51,626.