Canto Ltd, a Spanish Corporation, Acquired 100% Interest in Bevo $\begin{array}{ll}\text { Net Assets (Bevo) } & 35,000,000 \\\text { Goodwill } & 15,000,000 \\\text { Cash } &&50,000,000\end{array}$

Multiple Choice

Canto Ltd, a Spanish corporation, acquired 100% interest in Bevo, Inc., a U.S.corporation for $50,000,000.The net assets of Bevo had a book value of $35,000,000 and a fair value of $56,000,000.How should Canto record the business combination? A.
$\begin{array}{ll}\text { Net Assets (Bevo) } & 35,000,000 \\\text { Goodwill } & 15,000,000 \\\text { Cash } &&50,000,000\end{array}$

B.
$\begin{array}{ll}\text { Net Assets (Bevo) } &56,000,000 \\\text { Goodwill } & &6,000,000 \\\text { Cash } &&50,000,000\end{array}$

C.
$\begin{array}{ll}\text { Net Assets (Bevo) } &50,000,000 \\\text { Cash } &&50,000,000\end{array}$

D.
$\begin{array}{ll}\text { Net Assets (Bevo) } &56,000,000 \\\text { Goodwill } & &6,000,000 \\\text { Cash } &&50,000,000\end{array}$

A) Entry A
B) Entry B
C) Entry C
D) Entry D