On 1 January 20X0, Zed Ltd Acquired 100 % of the Share

Multiple Choice

On 1 January 20X0, Zed Ltd acquired 100 % of the share capital of Ned Ltd for $900 000 cash.At that date, the equity section of Ned Ltd's balance sheet was as follows:
\begin{array}{llcc} \text { } &\$ \\ \text {Share capital } &700000\\ \text {Retained profits } &50000\\ \text {Asset revaluation reserve } &100000\\end{array}

Assuming all assets and liabilities were recorded at their fair values what was the difference on acquisition?

A) $50 000 goodwill
B) $50 000 bargain purchase
C) $100 000 goodwill
D) $100 000 bargain purchase