22) Assuming the Entity Theory was applied, what would be the amount of Goodwill appearing on the Consolidated Balance Sheet on the Date of acquisition, assuming that Parent purchased 80% of Sub Inc. for $180,000?

A) $138,000 B) $137,000 C) $88,000 D) $130,000

Parent and Sub Inc. had the following balance sheets on July 31, 2018: Parent Inc (carrying value) $180,000 $100,000 S 60,000 $200,000 Sub Inc (carrying value) $36,000 $40,000 Cash Accounts Receivable Inventory Plant and Equipment (net) Goodwill Trademark Total Assets Sub Inc (fair value) $36,000 $40,000 $27,000 $93,000 $24,000 S- $80,000 $ 8,000 $12,000 $200,000 $15,000 S- S540,000 S50,000 $24,000 Current Liabilities Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity S 80,000 $320,000 S 90,000 S 50,000 S540,000 $50,000 $20,000 $80,000 $50,000 $200,000 The net income for Parent Inc and Sub Inc for the year ended July 31, 2018 were $120,000 and $60,000 respectiv