Byron Limited estimated the net present value of future cash flows from specialised equipment acquired under a business combination to be $120000. A replacement cost for the equipment is estimated to be $132000. The equipment has been independently appraised at a value of $122000. A similar item of equipment cost the acquirer $118000 last year. What is the value for recognition of the equipment under a business combination?

A.$132000.

B.$120000.

C.$118000.

D.$122000.