Question: if fair value lower than book value, how to prepare an acquisition analysis? for example,A acquire all share share capital of B, tax rate is
if fair value lower than book value, how to prepare an acquisition analysis?
for example,A acquire all share share capital of B, tax rate is 30%, book value of account receivable is $16,000 but fair value is $12,700. Equity of B Ltd consisted of:
share capital = $350,000
General reserve = $100,000
Retained earning = $60,000
how to prepare an acquisition analysis? Is that $350,000+$100,000+60,000-$3,300*(1-30%)=$507,690?
please answer with calculation.
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