Alby Ltd Paid $1 800 000 for 80 Per Cent

Multiple Choice

Alby Ltd paid $1 800 000 for 80 per cent of the voting shares of Bunter Ltd and evaluated Bunter's assets to be worth $3 000 000 and its liabilities $800 000.What was the goodwill on consolidation at date of acquisition?

A) $40 000
B) $400 000
C) $430 000
D) $360 000