Posch Company Issued 12,000 Shares of Its $20 Par Value

Posch Company issued 12,000 shares of its $20 par value common stock for the net assets of Sato Company in a business combination under which Sato Company will be merged into Posch Company.On the date of the combination,Posch Company common stock had a fair value of $30 per share.Balance sheets for Posch Company and Sato Company immediately prior to the combination were as follows: If the business combination is treated as an acquisition and the fair value of Sato Company's current assets is $135,000,its plant and equipment is $363,000,and its liabilities are $84,000,Posch Company's financial statements immediately after the combination will include:

A) Negative goodwill of $54,000.
B) Plant and equipment of $1,226,000.
C) Plant and equipment of $1,172,000.
D) An extraordinary gain of $54,000.