Broom acquired 90% of the ordinary shares of Handle for 125m on 31 December 20X4 when its assets were as follows:

	Book Value	Fair Value
	m	m
Land and buildings	12	40
Vehicles	26	23
Stock	35	30
Debtors	27	27
Creditors	10	10

The goodwill on acquisition of Handle (based on parent company extension method) is:

a.

15m

b.

44m

c.

8m

d.

26m