FRC Inc. acquired Marketing Inc on 1/1/2004. Marketing Inc. has 10,000 shares outstanding. Each share in Marketing Inc. was exchanged for half a share in FRC, Inc. Shares of FRC Inc., were trading at $100 per share at the date of the announcement of the transaction. Marketing Inc, had the following assets and liabilities that were assumed by FRC Inc.
The amount of Goodwill recognized by FRC, Inc. on January 1, 2004 is:
a) $400,000
b) $360,000
c) $495,000
d) $455,000