Write short note about the Reasons for Combinations

Particulars Current Assets Fixed Assets Preliminary Expenses Total Assets Amount 4,000,000 3,000,000 500,000 7,500,000 Amount Liabilities: Particulars Equity Shares: Equity shares fully paid Accumulated profits General Reserve 3,000,000 1,000,000 500,000 Debenture Accounts payables Notes payables Bank overdraft Total Liabilities 1,200,000 500,000 800,000 500,000 7,500,000 AL-Bayan Company X Ltd Agreed to take over the business of 'Masoud Company Ltd Calculate purchase consideration under Net Assets Method on the basis of the following: a The Market value of 80% of the Current Assets is estimated to be 30% more than the book value b. The Market value of fixed Assets is estimated to be 20% less than the book value The Creditor Accounts payables are undervalued by 10% d Bank overdraft are estimated to be 20% more than book value. e. There is Unrecorded liability of $ 50,000. O A 4260 OB 3460 OC 5460 OD 3510