11 Corporate accounting

Question 9 Not yet answered Marked out of 1.00 Flag question A Limited acquired 100% of the share capital of B Limited for $259 000. B had total shareholder's equity of $200 000. The book values of B Limited's assets were: land $150 000, machinery $80 000. The fair values of these assets were: land $180 000, machinery $90 000. Also, B Limited has not previously recorded an internally generated trademark with a fair value of $40 000 and a contingent liability related to a warranty with a fair value of $ 10 000. The tax rate is 30%. The acquisition analysis will determine: a. a gain on bargain purchase of $10 000 O b. a goodwill of $10 000. Fi O c. a goodwill of $35 000. O d. a gain on bargain purchase of $21 000. Ti