Question: Prepare business combination valuation entries for a machine based on the following information: Assume that the subsidiary owning the machine was acquired on July 1
Prepare business combination valuation entries for a machine based on the following information:
Assume that the subsidiary owning the machine was acquired on July 1st, 2016. The machine has a remaining useful life of ten years.
| In CU | Carrying amount | Fair value |
| Machine (Historical Cost 80,000) | 60,000 | 70,000 |
Please prepare adjusting business combination valuation entries as at July 1st 2016.
| No. | Debit | Amount | Credit | Amount | pts |
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Please prepare adjusting business combination valuation entries as at June 30th, 2017.
| No. | Debit | Amount | Credit | Amount | pts |
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