Question $5$

Pasta acquired $100\%$ of Sauce for $$200.$

At acquisition date Sauce had equity of $$170,$ comprised as follows:

Capital

$100$

Asset revaluation reserve

$20$

Retained earnings

$50$

Equity

$170$

The book value of net assets was considered to be close to fair value,

except for the following:

Intangibles

Cost $0$

Carrying$\_$amount $0$

Fair value $30$

The tax rate is $30\%.$

What is the amount of goodwill acquired by Pasta?

Select one:

a$.0$

b$.30$ credit

c$.30$ debit

d$.9$ credit

e$.9$ debit