Kafka Ltd. purchased 80% of Littman Ltd. for $700,000. At the time of acquisition, the carrying value of Littman's net identifiable assets was $1,000,000 and the fair value was $1,350,000. The companies pay tax at the rate of 30%. What is the amount of the goodwill under the partial goodwill method?
A)$180,000
B)$(56,000)
C)$144,000
D)None of the above.

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The Answer of Kafka Ltd. purchased 80% of Littman Ltd. for $700,000. At the time of acquisition, the carrying value of Littman's net identifiable assets was $1,000,000 and the fair value was $1,350,000. The companies pay tax at the rate of 30%. What is the amount of the goodwill under the partial goodwill method?
A)$180,000
B)$(56,000)
C)$144,000
D)None of the above.

Kafka Ltd Purchased 80% of Littman Ltd