Alexandra Limited Acquired 80% of the Share Capital and Reserves

Multiple Choice

Alexandra Limited acquired 80% of the share capital and reserves of Heads Limited for $300 000. Share capital was $200 000 and reserves amounted to $100 000. All assets and liabilities were recorded at fair value except buildings which was recorded at $20 000 below fair value. If the company tax rate was 30%, and the partial goodwill method was adopted, the NCI share of equity at the date of acquisition was:

A) $48 800.
B) $62 800.
C) $64 000.
D) $60 000.