Company Pogba acquired 100% of the 100 000 £1 shares in Company Drogba for £1 250 000 when the retained earnings were £650 000, the revaluation reserve was £275 000 and the general reserve was £75 000. The building which is carried at £425 000 was shown to have a fair value of £375 000 at the date of acquisition.
What is the goodwill arising on acquisition?
A £100 000
B £150 000
C £200 000
D £275 000