A Company Records a Gain on Bargain Purchase of $40

Multiple Choice

A company records a gain on bargain purchase of $40 000 on the acquisition of a subsidiary.Assuming there are no other tax adjustments for any companies,if the trading profit of the group before tax were $140 000,and given a tax rate of 30%,the group income tax expense would be:

A) $42 000.
B) $54 000.
C) $30 000.
D) none of the above.