Question: Bigger n' Better Pty Ltd has just acquired the Tiny Tots business. The fair value of Tiny Tots' net assets as at the date of

Bigger n' Better Pty Ltd has just acquired the Tiny Tots business. The fair value of Tiny Tots' net assets as at the date of acquisition is $1 855 000. Bigger n' Better Pty Ltd has agreed to pay the owners of Tiny Tots $1 000 000 in cash and give them 100 000 shares in Bigger n' Better Pty Ltd valued at $10 per share. Calculate the that would be recognised in Bigger n' Better PtyLtd's immediately after the acquisition. How will this be treated subsequent to its recognition?

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