Southwest is a private not-for-profit entity. It acquires Northeast, another private not-for-profit. The acquisition value is $980,000. Northeast has two assets (and no liabilities): equipment with a...

Southwest is a private not-for-profit entity. It acquires Northeast, another private not-for-profit.

The acquisition value is $980,000. Northeast has two assets (and no liabilities): equipment with a net book value of $120,000 but a fair value of $150,000 and a building with a net book value of $500,000 but a fair value of $800,000. Northeast expects to receive some support through donations and contributions. However, it is not expected to be predominantly supported by contributions and

investment income. After the combination, what should be reported for goodwill? Choose the correct.
a. $–0–
b. $30,000
c. $60,000
d. $360,000