Bellvista Limited Acquired the Net Assets and Contingent Liabilities of Aroona

Multiple Choice

Bellvista Limited acquired the net assets and contingent liabilities of Aroona Limited for a purchase consideration of $600 000. Aroona Limited's net assets and contingent liabilities at fair value were: total assets $840 000; total liabilities $300 000; and contingent liabilities $100 000. The amount of goodwill to be recognised by Bellvista Limited when recording the business combination is:

A) $160 000.
B) $260 000.
C) $400 000.
D) $440 000.