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How much goodwill will abc report on its balance sheet

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Question - ABC Corporation spends $15 on R&D during 2021. Also, on Dec. 31, 2021, ABC purchases Rtec Corp. by paying $70 cash to acquire all of Rtec's outstanding stock. At the date of acquisition, Rtec has assets with a balance sheet value of $100 and an estimated fair value of $120 and liabilities with a balance sheet value of $80 and an estimated fair value of $80. How much goodwill will ABC report on its 12/31/21 balance sheet, prepared immediately after the acquisition of Rtec?

a. $15

b. $20

c. $40

d. $30

Reference no: EM133151072

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