Zeke Ltd. (Zeke) contributed a patent to VE Company (VE) on January 1, 2023. VE is a business and is deemed to be a special-purpose entity (SPE). The fair value of VE's net identifiable assets (not including the patent) are $75,000. Zeke is the primary beneficiary. The patent has a carrying value of $10,000 on Zeke's separate-entity balance sheet and a fair value of $40,000. The fair value of the noncontrolling interest on January 1, 2023 is $30,000.

What is the correct reporting requirement for the difference, if any, between the implied value and the consideration received?

Multiple Choice

Nothing needs to be accounted for as there was no difference.

Since VE is a business, the negative goodwill will be reported as a gain on purchase.

Goodwill will be reported on the consolidated balance sheet.

The difference is allocated proportionately to VE's identifiable net assets.