Leader Limited acquired 100% of the share capital of Follower Limited. The Follower had issued share capital
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Question:
Leader Limited acquired 100% of the share capital of Follower Limited. The Follower had issued share capital of R100 000, The book values of Follower Limited's assets were: Land R50 000, Equipment R60 000. The fair values of these assets were: Land R90 000, Equipment R70 000. The tax rate is 30%. The net revaluation of the assets is:
Select one:
A. R160 000
B. R35 000
(40 000+ 10 000)x (100%-30%). revaluation amount is
recorded after tax
C. R110 000
D.R100 000
Related Book For
Operations Management Managing Global Supply Chains
ISBN: 978-1506302935
1st edition
Authors: Ray R. Venkataraman, Jeffrey K. Pinto
Posted Date: