On December 31,20X1,Pine Corporation Acquired 100 Percent Ownership of Sap

Multiple Choice

On December 31,20X1,Pine Corporation acquired 100 percent ownership of Sap Corporation.On that date,Sap reported assets and liabilities with books values of $450,000 and $200,000,respectively,common stock outstanding of $150,000,and retained earnings of $100,000.The book values and fair values of Sap's assets and liabilities were identical except for land which had increased in value by $15,000 and inventories which had decreased by $5,000.
-Based on the preceding information,what amount of differential is implicit in the acquisition if the acquisition price was $280,000?

A) $10,000
B) $20,000
C) $25,000
D) $30,000