Pirate Industries purchased Treasure Island for $2.1 million cash. The assets and liabilities of Treasure Island at the time of the acquisition are listed below.

Assets Cash................................................. $125,000 Accounts receivable........................ 575,000 Inventory............................................ 850,000 PP&E ..................................................400,000 Total Assets ................................. $1,950,000

Liabilities Accounts payable........................... $250,000 Long-term debt ..................................375,000 Total Liabilities ------------------------- 625,000

At the time of the acquisition, the fair values of the assets of Treasure Island were valued as follows. Fair values of the liabilities are the same as above.

Fair Value Cash .................................................. $125,000 Accounts receivable.......................... 575,000 Inventory ............................................. 800,000 PP&E ................................................... 700,000 Patents ................................................ 300,000 Totals ............................................. $2,500,000

Is there any Goodwill from the purchase of Treasure Island? If so, how much?

Question 3 options:

	225,000
	550,000
	600,000
	No Goodwill