On 1 January 20X0, John Ltd acquired 100 % of the share capital of Paul Ltd for $400 000 cash.At that date, the equity section of Paul Ltd's balance sheet was as follows:
Share capital
Retained profits $\quad $ $\quad $$\quad $100000
Asset revaluation reserve
Assuming all assets and liabilities were recorded at their fair values what was the difference on acquisition?
A)$200 000 goodwill
B)$100 000 bargain purchase
C)$100 000 goodwill
D)$200 000 bargain purchase

Question

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The Answer of On 1 January 20X0, John Ltd acquired 100 % of the share capital of Paul Ltd for $400 000 cash.At that date, the equity section of Paul Ltd's balance sheet was as follows:
Share capital
Retained profits $\quad $ $\quad $$\quad $100000
Asset revaluation reserve
Assuming all assets and liabilities were recorded at their fair values what was the difference on acquisition?
A)$200 000 goodwill
B)$100 000 bargain purchase
C)$100 000 goodwill
D)$200 000 bargain purchase

On 1 January 20X0, John Ltd Acquired 100 % of the Share