On 1 July 20X6 Possum Acquired a 100% Interest in Echidna.At

Multiple Choice

On 1 July 20X6 Possum acquired a 100% interest in Echidna.At that time Echidna had goodwill of $5 000 recorded in its statement of financial position as a result of a previous business combination.The total goodwill arising on Possum's acquisition of Echidna was $12,000.The goodwill recognised on consolidation as a result of Possum's acquisition of Echidna is:

A) nil
B) $5 000
C) $7 000
D) $12 000