What would be the cost of an acquisition if we obtain a 'negative' goodwill or bargain gain of 600?. We must assume that subsidiary's owner's equity is 4,000, there's an asset with a fair value 4,000 higher than its book value and the tax rate is 50%. There are no non controlling interests. 5,400 3,200 6,600 None of the other answers are correct Company H buys all the shares of company K paying 300. Fair value of K's assets is equal to its book value, except for a building that is 100 higher. K's owner's equity is 150. Assuming a tax rate of 50% the equity-investment elimination adjustment will be... Debit 100 Building, Credit 300 Investment, Debit 150 Owner's equity, Credit 50 Def. Tax Liability, Debit 100 Goodwill Debit 100 Building, Credit 300 Investment, Credit 150 Owner's equity, Credit 50 Def. Tax Asset, Debit 100 Goodwill Debit 100 Building, Debit 300 Investment, Credit 150 Owner's equity, Credit 50 Def. Tax Liability, Debit 200 Goodwill None of the other answers are correct