On 30 June 2014 TYO acquired 800,000 of PLO's 1 million shares. The purchase consideration was...

 

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On 30 June 2014 TYO acquired 800,000 of PLO's 1 million shares. The purchase consideration was as follows: TYO issued 3 shares for every five shares acquired in PLO. On 30 June the market price of a TYO share was $3.80 and the market price of a PLO share was $3.00. TYO agreed to pay $550,000 in cash to the existing shareholders on 30 June 2015. TYO's borrowing rate was 10% per annum. TYO paid advisors $100,000 to advise on the acquisition. What is the cost of investment that will be used in the goodwill calculation in the consolidated accounts of TYO? On 30 June 2014 TYO acquired 800,000 of PLO's 1 million shares. The purchase consideration was as follows: TYO issued 3 shares for every five shares acquired in PLO. On 30 June the market price of a TYO share was $3.80 and the market price of a PLO share was $3.00. TYO agreed to pay $550,000 in cash to the existing shareholders on 30 June 2015. TYO's borrowing rate was 10% per annum. TYO paid advisors $100,000 to advise on the acquisition. What is the cost of investment that will be used in the goodwill calculation in the consolidated accounts of TYO?

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