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On January 1, 2017, Aiello Company purchased 100% of the common stock Uline Industries for...

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Accounting

On January 1, 2017, Aiello Company purchased 100% of the common stock Uline Industries for $450,000. On that date, Uline had common stock of $90,000 and retained earnings of $280,000. Equipment and land were each undervalued by $25,000 on Ulines books. There was a $10,000 overvaluation of Bonds Payable, as well a $20,000 undervaluation of inventory. What is the amount of goodwill recorded in connection with this combination?

Select one:

A. $20,000

B. $80,000

C. $-0-

D. $25,000

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