show the workings please

29. For the year ended 30 June 20X6, the following financial statements were prepared for the two companies Arkle Ltd and Red Rum Ltd (amounts in thousands). At that date, the net assets of Red Rum Ltd approximated their fair value. Balance Sheets as at 30 June 20xs ArkleRed Rum Ltd Ltd Sundry assets $10 000 $2 000 Investment in Subsidiary Total assets Less liabilities 2 000 $2 000 500 $12 000 2 000 $10 000 $ 2 000 Net assets $1 500 Shareholders' equity Issued capital Retained eamings $1 000 500 8 000 $10 000 $1 500 Total shareholders' equity Income Statements for the Year ended 30 June 20x6 Arkle Red Rum Sales revenue Less cost of goods sold Gross profit Less sundry expenses Profit from continuing activities before tax $20 000 12 000 $2 000 1 200 $8000 4 000 S 800 100 S 4 000 1 500 S 700 Less income tax expense 350 Profit for the year $ 2 500 S 350 Statements of Movements in Retained Earnings Year ended June 30 20x Red Rum Ltd S 400 350 250 Arkle Retained earnings 1 July 20x5 Add profit for the year Less dividend paid S 6 000 2 500 500 Retained earnings 30 June 20X6 8000 $ 500 On 1 July 20X5, Arkle Ltd acquired all the issued capital for $2 250 000 cash. Immediately subsequent to acquisition, Red Rum Ltd paid a dividend of $250 000 out of retained eanings at 1 July 20x5. The goodwill paid on the investment was: a) $850 000 b) $750 000 c) $600,000. d) none of the above