Small Co purchased $90\%$ of the ordinary shares of Tiny Co on $1$ June

$2021$ for $11,650,000.$ The summarised balance sheet of Tiny Co at

that date included:

Ordinary share capital

Share premium

Retained earnings

$$

$8,000,000$

$2,000,000$

$4,000,000$

The fair values of the separable net assets of Tiny Co were $500,000$

less than their book values at the date of acquisition. It was not

possible to arrive at the fair value of non$-$controlling interest on $1$ June

Goodwill arising on consolidation amounted to:

$(4$ marks$)$

a$)1,000,000$ positive goodwill

b$)500,000$ positive goodwill

c$)500,000$ negative goodwill

d$)1,000,000$ negative goodwill