On December 31, 20X8, Mercury Corporation acquired 80 percent ownership of Saturn Corporation. On that date, Saturn reported assets and liabilities with book values of $400,000 and $100,000, respectively, common stock outstanding of $50,000, and retained earnings of $250,000. The book values and fair values of Saturn's assets and liabilities were identical except for land which had increased in value by $20,000 and inventories which had decreased by $5,000.

Based on the preceding information, what amount will be the differential, if the acquisition price was $320,000?

Zero

$75,000

$100,000

$20,000