Problem 4-10 (LO 4-9)

Amie, Inc., has 145,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 43,500 of Amies shares on January 1, 2012, for $174,000 when Amies net assets had a total fair value of $532,250. On July 1, 2015, Prairie bought an additional 87,000 shares of Amie from a single stockholder for $6 per share. Although Amies shares were selling in the $5 range around July 1, 2015, Prairie forecasted that obtaining control of Amie would produce significant revenue synergies to justify the premium price paid. If Amies net identifiable assets had a fair value of $738,750 at July 1, 2015, how much goodwill should Prairie report in its postcombination consolidated balance sheet?

$131,250.

$72,500.

$73,250.

$0