Sunny Co Purchased 80% of Reuben Ltd

Multiple Choice

Sunny Co. purchased 80% of Reuben Ltd. for $1,200,000. At the date of acquisition, the carrying value of Reuben's net identifiable assets was $1,000,000, and the fair value was $1,300,000. What is the amount of the goodwill under the entity method?

A) $0
B) $200,000
C) $240,000
D) $300,000