Pirate Corporation acquired 100 percent of Ship's Corporation's common stock on January 1, 20X9. Summarized balance sheet information for the 2 companies immediately after the combination is provided

Pirate Corp Ship Corp Fair Value

Cash and Receivables 60,000 15,000 15,000

Inventory 110,000 32,000 38,000

Buildings and Equipment 160,000 90,000 120,000

Investment in Ship Stock 150,000

Total 480,000 137,000

Accounts Payable 40,000 5,000 5,000

Bonds Payable 200,000 40,000 40,000

Common Stock 100,000 40,000

Retained Earnings 140,000 52,000

Total 480,000 137,000

Based on the preceding information, in the amount of differential associated with the acquisition is:

a. 58,000 b. 0 c. 22,000 d. 36,000