Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately following the acquisition follow:
PACE
Cash $30,000,
Accounts receivable $80,000,
Inventory $150,000,
Land $65,000,
Buildings and Equipment $260,000 (less accumulated depreciation of $120,000,
Investment in Spin Company $150,000,
Accounts Payable $45,000,
Taxes payable $20,000,
Bonds Payable $200,000,
Common stock $50,000,
Retained earnings $300,000.
SPIN:
Cash $25,000,
Accounts Receivable $40,000,
Inventory, $55,000,
Land $40,000,
Buildings and equipment $160,000 (less accumulated depreciation $50,000,
Accounts Payable $33,000,
Taxes payable $8,000,
Bonds payable $100,000,
Common Stock $20,000,
Retained earnings $109,000.
At the date of the business combination, the book values of Spin's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, and land, which had a fair value of $50,000. The fair value of land for Pace Corporation was estimated at $80,000 immediately prior to the acquisition. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?
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$0
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$21,000
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$6,000
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$15,000
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