Nebulus Corporation Owns 30% of the Voting Stock of Suite

Nebulus Corporation owns 30% of the voting stock of Suite Company. It reports the 30% interest as an equity method investment, with a current carrying value of $32,000,000 and a market value of $45,000,000. Nebulus acquires the remaining 70% interest for $120,000,000 in cash. At that time, the fair value of Suite's identifiable net assets was $125,000,000, and Suite's book value was $45,000,000. As part of the acquisition entry, Nebulus records

A) A gain of $13,000,000, in income.
B) Goodwill of 27,000,000.
C) Goodwill of $107,000,000.
D) A gain of $5,000,000, in income.