Billy Ltd acquired the identifiable assets, liabilities and contingent liabilities of Bryan Ltd for $536,000. The items acquired, stated at fair value, are: plant $288,000; inventory $160,000; accounts receivable $72,000; patents $40,000; and accounts payable $64,000. Which of the following should be recorded on the acquisition date?

Group of answer choices

Goodwill of $40,000

Gain on Bargain Purchase of $88,000

Goodwill of $88,000

Gain on Bargain Purchase of $40,000