Use the Following Information to Answers

Multiple Choice

Use the following information to answers
Edward Ltd acquires all issued shares in Jacob Ltd for $220 000 paid in cash. Equity of Jacob Ltd consists of $130 000 share capital and $45 000 retained earnings. At acquisition date, Jacob Ltd owns a block of land, which it initially purchased at $200 000. The fair value of the land is $240 000. The carrying amount of Jacob Ltd's property, plant and equipment is $130 000 with accumulated depreciation of $55 000. The fair value of the property, plant and equipment is $95 000.
-Which of the following statements is correct about the above business combination?

A) There is gain on bargain purchase of $45 000 to be recognised.
B) There is goodwill of $45 000 to be recognised.
C) There is gain on bargain purchase of $3000 to be recognised.
D) There is goodwill of $3000 to be recognised.