On December 31,20X1,Pine Corporation acquired 100 percent ownership of Sap Corporation.On that date,Sap reported assets and liabilities with books values of $450,000 and $200,000,respectively,common stock outstanding of $150,000,and retained earnings of $100,000.The book values and fair values of Sap's assets and liabilities were identical except for land which had increased in value by $15,000 and inventories which had decreased by $5,000.
-Based on the preceding information,what amount of differential is implicit in the acquisition if the acquisition price was $280,000?
A)$10,000
B)$20,000
C)$25,000
D)$30,000

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The Answer of On December 31,20X1,Pine Corporation acquired 100 percent ownership of Sap Corporation.On that date,Sap reported assets and liabilities with books values of $450,000 and $200,000,respectively,common stock outstanding of $150,000,and retained earnings of $100,000.The book values and fair values of Sap's assets and liabilities were identical except for land which had increased in value by $15,000 and inventories which had decreased by $5,000.
-Based on the preceding information,what amount of differential is implicit in the acquisition if the acquisition price was $280,000?
A)$10,000
B)$20,000
C)$25,000
D)$30,000

On December 31,20X1,Pine Corporation Acquired 100 Percent Ownership of Sap