Question
2. Xmen Ltd purchased all the shares of Logan Ltd on 1 Jan 20X8 for $500,000. On that date, Logan Ltds equities had share capital
2. Xmen Ltd purchased all the shares of Logan Ltd on 1 Jan 20X8 for $500,000. On that date, Logan Ltds equities had share capital of $300,000, general reserve of $50,000, and retained profits of $120,000. On the control date, the fair value of Logan Ltds net assets was $20,000 lower than their carrying amount. How much consolidation goodwill/bargain purchase gain should be reported in the consolidated financial statements?
A. $30,000 consolidation bargain purchase gain
B. $30,000 consolidation goodwill
C. $50,000 consolidation goodwill
D. $50,000 consolidation bargain purchase gain
Please provide calculation
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