For the year ended 30 June 20X6,the following financial statements were prepared for the two companies Arkle Ltd and Red Rum Ltd (amounts in thousands).At that date,the net assets of Red Rum Ltd approximated their fair value. Balance Sheets as at 30 June 20X6

\begin{array}{lrr}&\text { Arkle }&\text {RedRun }\\&\text { Ltd }&\text { Ltd }\\\text { Assets }\\\text { Sundry assets } & \$ 10000 & \$ 2000 \\\text { Investment in Subsidiary } & 2000 &\\\text { Total assets } & \$ 12000&\$2000 \\\text { Less liabilities } & 2000&500\\\text { Net assets }&\$10,000&\$1500\\\text { Shareholders' equity } & \\\text { Issued capital } & \$ 2000&\$1000 \\\text { Retained earnings } & 8000&500\\\text { Total shareholders' equity }&\$10,000&\$1500\end{array}

Income Statements for the Year ended 30 June 20X6

\begin{array}{lrr}&\text { Arkle }&\text {RedRun }\\&\text { Ltd }&\text { Ltd }\\\text { Sales revenue }&\$ 20000 & \$ 2000 \\\text {Less cost of goods sold }&12000 & 1200\\\text { Gross profit }&\$8000&\$800\\\text { Less sundry expenses }&4000&100\\\text { Profit from continuing activities before tax }&\$4000&\$800\\\text { Less income tax expense }&1500&350\\\text { Profit for the year }&\$2500&\$350\end{array}

Statements of Movements in Retained Earnings Year ended June 30 20X6

\begin{array}{lrr}&\text { Arkle }&\text {RedRun }\\&\text { Ltd }&\text { Ltd }\\\text { Retained earnings } 1 \text { July 20X5 } & \$ 6000 & \$ 400 \\\text { Add profitfor the year } & 2500 & 350 \\\text { Less dividend paid } & 500 & 250\\\text { Retained earnings } 30 \text { June } 20X6&\$8000&\$500\end{array}

On 1 July 20X5,Arkle Ltd acquired all the issued capital for $2 250 000 cash.Immediately subsequent to acquisition,Red Rum Ltd paid a dividend of $250 000 out of retained earnings at 1 July 20X5.The goodwill paid on the investment was:
A) $850 000.
B) $750 000.
C) $600,000.
D) none of the above.

On the Acquisition Date,the Fair Value of Slate's Identifiable Net

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