Cockroaches Limited Acquired the Identifiable Assets, Liabilities and Contingent Liabilities

Multiple Choice

Cockroaches Limited acquired the identifiable assets, liabilities and contingent liabilities of Inglis Limited for $268 000. The items acquired, stated at fair value, are: plant $144 000; inventory $80 000; accounts receivable $36 000; patents $20 000; and accounts payable $32 000. The difference on acquisition is:

A) gain on bargain purchase $20 000.
B) gain on bargain purchase $32 000.
C) goodwill of $20 000.
D) goodwill of $248 000.