Band company bought the shares of the one of its affiliates for $100.000, on the date of

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Question:

Band company bought the shares of the one of its affiliates for $100.000, on the date of the purchase the net assets of the affiliate had a book value of $75,000. Bandit allocated $20,000 of the excess to undervalued building.to what account should the remaining excess be allocated?

A) Goodwill

B) Ordinary Shares

C) Retained Earnings

D) Revenue from investment in affiliates