Clive Ltd acquired 80% of the ordinary share capital of Graham Ltd, for cash, at a cost of 2,000,000. The balance sheet of Graham Ltd at the date of acquisition was as follows:

Which is the correct figure to be included in the consolidated balance sheet as goodwill (using the proprietary concept)?

a.

240,000

b.

80,000

c.

400,000

d.

56,000