Solitary Man Ltd purchased 100% of the shares in Rockabilly Ltd on 1 July 2020, for a cash consideration of $ 500,000. On that date, the equity balances of Rockabilly Ltd were:

Share Capital $250,000

Retained Earnings $150,000

Asset Revaluation Reserve $70,000

All of the identifiable net assets were recorded at their fair value in the books of Rockabilly Ltd, except for:

Provision for legal claims (contingent liability) - Estimated claim recorded in the note $10,000; Fair value $20,000

Rockabilly Ltds assets also included Goodwill of $20,000.

The Company Tax rate is 30%. The line item for goodwill in the consolidation worksheet will include the following entry in the adjustment column:

a.

Dr Goodwill of $64,000

b.

Dr Goodwill of $20,000

c.

Dr Goodwill of $44,000

d.

None of the other options are correct

e.

Cr Goodwill of $20,000