Poppy Ltd acquired all of the share capital of Sarsi Ltd on 1 July 2019. On that date, Sarsi Ltd had issued share capital of $200 000 and retained earnings of $80,000. All of the net assets of Sarsi Ltd are recorded at fair values except for the following:

	Carrying amount	Fair value
	$	$
Buildings (cost $120,000)	100,000	180,000
Machinery (cost $150,000)	120,000	140,000

Assuming a tax rate of 30%, the following shows the business combination valuation entries required to record the buildings in the consolidation worksheet, Except For :

Dr. Accumulated Depreciation - Building $20,000

Cr. Building $20,000r
Dr. Building $80,000

Cr. BCVR $80,000

Answer rating: 100% (QA)

As the business combination journal entry for the building is already men... View the full answer