Maroons Limited Acquired the Net Assets and Contingent Liabilities of Lewis

Multiple Choice

Maroons Limited acquired the net assets and contingent liabilities of Lewis Limited for $60 000. Lewis Limited's net assets and contingent liabilities were: total assets $84 000; total liabilities $10 000; and contingent liabilities $12 000. Maroons Limited will record a:

A) goodwill of $2000.
B) gain on bargain purchase of $2000.
C) goodwill of $14 000.
D) gain on bargain purchase of $60 000.