ABC Ltd purchases a 100 per cent interest in XYZ Ltd. The cost of the acquisition is $1 600 000 plus associated legal costs of $80 000. As at the date of acquisition, the statement of financial position of XYZ Ltd shows total assets $2,000,000 and total labilities $1,000,000.

Calculate the net assets of  XYZ Ltd.

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The net assets of XYZ Ltd can be calcul... View the full answer