On January 1, Year 1, RAK, Inc. acquired a 25% Interest in Tech Corp. for $375,000. At the date of acquisition, the net assets had a fair value in excess of shareholders' equity of $200,000. The fair value in excess of book value is the result of equipment with a remaining useful life of four years. For the year ended December 31, Year 1. Tech had net income of $60,000 and RAK received a dividend of $10,000 from Tech At December 31, Year 1, Tech had shareholders' equity of $820,000. What is the amount of goodwill associated with RAK's purchase of Tech?
a. $175,000
b. $170.000
c. $125,000
d. $93,750