Moray acquired 80% of the voting equity shares of Forth for cash of $1,250,000. The fair value of the non-controlling interest at acquisition was $300,000. Forth had the following equity at the date of acquisition:

$

Ordinary shares $1 500,000

Retained earnings 700,000

The fair values of the net assets of Forth were the same as their book values, with the exception of some land with a carrying amount of $500,000 and a fair value of $600,000.

What was the goodwill on acquisition of Forth?

a.

$250,000

b.

$50,000

c.

$350,000

d.

$210,000