Question: On the same day, Holt Pty. Ltd. acquired the net assets of the partnership Holt Trading, consisting of Cash totaling $250,000, Equipment at $600,000 and

On the same day, Holt Pty. Ltd. acquired the net assets of the partnership Holt Trading, consisting of Cash totaling $250,000, Equipment at $600,000 and a Bank Loan of $350,000. The directors of Holt Pty. Ltd. agreed that the fair value of Holt Trading was $600,000 and that each partner of Holt Trading would receive the immediate allotment of 300,000 $1.00 ordinary shares in Holt Pty. Ltd.

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