Pat Ltd paid $22 000 for 80% of the shares in Rich Ltd. At the date of acquisition Rich Ltd had equity as follows:

Share capital $18 000

Retained earnings $5 000

Other reserves $2 000

All of Rich Ltds assets and liabilities were recorded at fair value. The fair value of identifiable net assets acquired by Pa Ltd amounted to:

Select one:

A.

$20 000

B.

$22 000

C.

$25 000

D.

$17 600