Panda Ltd Acquires All the Issued Capital of Bear Ltd

Panda Ltd acquires all the issued capital of Bear Ltd for a cash payment of $2 545 000 on 30 June 2015.The statement of financial position of Bear Ltd at purchase date is: $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(\$ 000) \\\begin{array}{|l|r|}\hline \text { Assets } & \\\hline \text { Cash } & 85 \\\hline \text { Accounts receivable } & 185 \\\hline \text { Equipment } & 990 \\\hline \text { Land } & \underline{1285} \\\hline \text { Total assets } &\underline{ 2545} \\\hline & \\\hline \text { Liabilities } & \\\hline \text { Accounts payable } & 45 \\\hline \text { Loans } & \underline{500} \\\hline \text { Total liabilities } & \underline{545} \\\hline & \\\hline \text { Shareholders' equity } & \\\hline \text { Share capital } & 1500 \\\hline \text { Retained earnings } & \underline{500} \\\hline \text { Total liabilities and shareholders' funds } &\underline{2545} \\\hline\end{array}$ Assuming the assets are at fair value,what amount of goodwill would be recorded in the books of Bear Ltd and what amount would be recorded in the consolidated statements at the date of purchase?

A) Bear's books $0; consolidated statements $0
B) Bear's books $0; consolidated statements $545 000
C) Bear's books $545 000; consolidated statements $270 000
D) Bear's books $270 000; consolidated statements $270 000

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