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

Multiple Choice

On 1 January 20X0, John Ltd acquired 100 % of the share capital of Paul Ltd for $400 000 cash.At that date, the equity section of Paul Ltd's balance sheet was as follows:
Share capital
Retained profits $\quad$ $\quad$$\quad$ 100000
Asset revaluation reserve
Assuming all assets and liabilities were recorded at their fair values what was the difference on acquisition?

A) $200 000 goodwill
B) $100 000 bargain purchase
C) $100 000 goodwill
D) $200 000 bargain purchase