Company Pogba acquired 100% of the 100 000 1 shares in Company Drogba for 1 250 000 when the retained earnings were 650 000, the revaluation reserve was 275 000 and the general reserve was 75 000. The building which is carried at 425 000 was shown to have a fair value of 375 000 at the date of acquisition.

What is the goodwill arising on acquisition?

A 100 000

B 150 000

C 200 000

D 275 000