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Wheddon Co purchased 60,000 ordinary shares in Raleigh Co for $85,000 five years ago, when Raleigh Cos retained earnings were $20,000. Raligh Cos equity and

Wheddon Co purchased 60,000 ordinary shares in Raleigh Co for $85,000 five years ago, when Raleigh Cos

retained earnings were $20,000.

Raligh Cos equity and reserves at 31 July 20X9 were as follows:

Ordinary shares $1 80,000

Retained earnings 70,000

The fair value of the non-controlling interest at acquisition was $22,000.

What was the goodwill arising on acquisition of Raleigh Co?

A $7,000

B $10,000

C $25,000

D $43,000

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