Pat Ltd paid $22 000 for 80% of the shares in Rich Ltd. At the date of
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Question:
Pat Ltd paid $22 000 for 80% of the shares in Rich Ltd. At the date of acquisition Rich Ltd had equity as follows:
Share capital $18 000
Retained earnings $5 000
Other reserves $2 000
All of Rich Ltd’s assets and liabilities were recorded at fair value. The fair value of identifiable net assets acquired by Pa Ltd amounted to:
Select one:
A.
$20 000
B.
$22 000
C.
$25 000
D.
$17 600
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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