Pagach Company Purchased 100% of the Voting Common Stock of Rage

Multiple Choice

Pagach Company purchased 100% of the voting common stock of Rage Company for $1,800,000. The following book and fair values are available: The bonds payable will appear on the consolidated balance sheet

A) at $300,000 (with no premium or discount shown) .
B) at $300,000 less a discount of $50,000.
C) at $0; assets are recorded net of liabilities.
D) at an amount less than $250,000 since it is a bargain purchase.