Sippy Ltd acquired 100% of the issued shares of Downs Ltd when the carrying amount of...
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Sippy Ltd acquired 100% of the issued shares of Downs Ltd when the carrying amount of Downs Ltd's machinery was $100 000. The fair value of this machinery at the acquisition date was $150 000. The company tax rate is 30%. When the consolidation is performed at the acquisition date, the business combination valuation entry for the machinery will include the following. a. Debit BCVR $15,000 Ob. Credit BCVR $35,000 Oc. Credit BCVR $50,000 Od. Credit BCVR $150,000 Sippy Ltd acquired 100% of the issued shares of Downs Ltd when the carrying amount of Downs Ltd's machinery was $100 000. The fair value of this machinery at the acquisition date was $150 000. The company tax rate is 30%. When the consolidation is performed at the acquisition date, the business combination valuation entry for the machinery will include the following. a. Debit BCVR $15,000 Ob. Credit BCVR $35,000 Oc. Credit BCVR $50,000 Od. Credit BCVR $150,000
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