Parkin Industries, a U.S. company, acquired a wholly-owned subsidiary, located in Italy, at the beginning of the current year, for 200,000. The subsidiary's functional currency is the euro. The balance sheet of the subsidiary at the date of acquisition was as follows:

Assets
Current assets	50,000
Plant and equipment, net	200,000
Total assets	250,000
Liabilities and Equity
Liabilities	160,000
Capital stock	20,000
Retained earnings	70,000
Total liabilities and equity	250,000

Appropriate revaluations of the subsidiary's assets at the date of acquisition are as follows:

	Inventories are undervalued by 1,000. The subsidiary sold the inventory during the current year.
	Equipment is undervalued by 15,000. The equipment has a 10-year remaining life, straight-line.
	Identifiable indefinite life intangible assets, previously unreported, have a fair value of 40,000.

During the current year, there was no impairment of either identifiable intangible assets or goodwill. The exchange rate at the beginning of the year was $1.20/. The average rate for the year was $1.22/, and the rate at the end of the year was $1.25/. The entries required to consolidate the balance sheets of Parkin Industries and its subsidiary at the date of acquisition include recognition of goodwill of:

Select one:

A. $0

B. $ 64,800

C. $132,000

D. $103,200