In the Event of a Negative Acquisition Differential, Under What

Multiple Choice

In the event of a negative acquisition differential, under what circumstances is it still possible to have positive goodwill?

A) It is not possible; once there is a negative acquisition differential, the result is negative goodwill.
B) If the fair values of the subsidiary's net assets are less than their carrying amounts and if the total consideration is greater than the fair value of the subsidiary's identifiable nets assets, there will be positive goodwill.
C) If the total consideration exceeds the carrying value of the subsidiary's identifiable nets assets, there will be positive goodwill.
D) If the carrying values of the subsidiary's net assets are less than their fair values and if the total consideration is greater than the carrying amount of the subsidiary's identifiable nets assets, there will be positive goodwill.