Use the data given below to answer Q 18 to Q 21: Life Ltd., a hypothetical company acquired all of the outstanding shares of Fifo Ltd. (another hypothetical company) by issuing 1million shares of Re 1 (per share) face value and Rs 14 (per share) in excess of par, having a total of Rs 15: per share (market value). Just before the completion of the deal, the information provided by the two companies were as follows (Note: fair values are more updated and relevant compared to the book values for such deals): Shareholder's equity: Capital stock (Re 1 par) Additional PUC Retained eamings Liabilities: Accounts payables and accruals Long-term debt Assets: Cash and receivables Inventory Prop. Plant & Equip. (net) Lifo 5,000.00 6,000.00 14,000.00 (Values In Rs 000) Fifo Ltd. (Book value) Fifo Ltd. (fair value) 400.00 700.00 800.00 8,000.00 16,000.00 600.00 2,000.00 600.00 1,800.00 300.00 300.00 10,000.00 12,000.00 27,000.00 1,700.00 2,500.00 3,000.00 4,500.00 18. After the acquisition, which company will record an intangible asset (Goodwill) in its balance sheet? a. Lifo Ltd. b. Fifo Ltd. c. Both companies. d. None. Ans: A 19. As per the purchase price, considering the fair values the goodwill recorded by Lifo, Ltd. will be (in Rs.): a. 5,400,000. b. 4,120,000. c. 13,100,000. d. 9,600,000. Ans: D 20. As per the purchase price, considering the book values of the acquired firm, the excess cash paid by Life Ltd. to Fifo Ltd. is (in Rs.): a. 5,400,000. b. 4,120,000. c. 13,100,000. d. 9,600,000. Ans: C 21. Fill in the consolidated balance sheet of Life Ltd. (after the acquisition)(values in Rs 000): , Cash and receivables. iii. PP&E (net). v. Goodwill. SOL: pp. 19 around L2 ii. Long-term debt. iv. Additional PUC. vi. Total stockholder's equity..