XYZ Limited Paid $2 Million for 100 Per Cent of the Voting

Multiple Choice

XYZ Limited paid $2 million for 100 per cent of the voting shares of ABC Limited and determined the assets to be worth $3 million and the liabilities $800 000. What was the goodwill on consolidation at the date of acquisition?

A) $100 000
B) $200 000
C) $300 000
D) None of the above