Stairwell Limited acquired 100% of the share capital of Bannister Limited for $475 000. Bannister had total shareholders equity of $400 000. The book values of Bannister Limiteds assets were: buildings $200 000, machinery $240 000. The fair values of these assets were: buildings $240 000, machinery $250 000. The tax rate is 30%. The acquisition analysis will determine:

a goodwill of $75 000.

a goodwill of $40 000.

a gain on bargain purchase of $25 000.

a gain on bargain purchase of $75 000