On June 30, 20X1, Naeder Corporation Purchased for Cash at $10

Multiple Choice

On June 30, 20X1, Naeder Corporation purchased for cash at $10 per share all 100,000 shares of the outstanding common stock of the Tedd Company. The total fair value of all identifiable net assets of Tedd was $1,400,000. The only noncurrent asset is property with a fair value of $350,000. The consolidated balance sheet of Naeder and its wholly owned subsidiary on June 30, 20X1, should report

A) a retained earnings balance that is inclusive of a gain of $400,000.
B) goodwill of $400,000.
C) a retained earnings balance that is inclusive of a gain of $350,000.
D) a gain of $400,000