On January 1,2019,Sheldon Company paid $750,000 cash for 100% of the outstanding common stock of Mullen Company;Mullen's book value of assets minus liabilities on the date of acquisition was $550,000.The current fair value of Mullen's net assets was $70,000 in excess of their book value.What was the amount of goodwill acquired by Sheldon Company?

A) $200,000.
B) $130,000.
C) $480,000.
D) $270,000.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting the value of the company’s brand, customer relationships, and other factors.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Fair Value

The amount one would get from selling an asset or the cost incurred to transfer a liability during a regulated transaction with participants in the market as of the valuation date.