Answer:
$20,000
Explanation:
On the date of acquisition, Lange's net assets had a book value of $500,000 and fair value of $600,000.
The amount of goodwill that resulted from this acquisition is calculated by the excess of price over the fair value of net identifiable assets which in this case is $600,000.
Proportionately, 30% of the fair value of net identifiable assets is $180,000
However the consideration paid is $200,000.
Hence Goodwill from the acquisition which is the excess of price over the fair value is $20,000.
