Assuming That the Proprietary Theory Was Applied, What Would Be

Multiple Choice

Assuming that the Proprietary Theory was applied, what would be the amount of Goodwill appearing on the Consolidated Balance Sheet on the date of acquisition, assuming that Parent purchased 80% of Sub Inc. for $180,000 on August 1, 2018?

A) $72,000
B) $88,000
C) Nil
D) Cannot be determined from the information given.