Northern purchased the entire business of Southern including all its assets and liabilities for $687,750. Below is information related to the two companies: Northern Southern Fair value of assets $1,048,000 $786,000 Fair value of liabilities 573,000 308,000 Reported assets 811,000 645,000 Reported liabilities 482,000 252,000 Net Income for the year 46,000 63,000 How much goodwill did Northern pay for acquiring Southern?
$149,150 $209,750 $393,000 $294,750