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A. Acquisition Analysis at 1 July 2013 Net Fair Value of Identifiable Assets = $380,000 + $70,000 + $62,000 (equity) + $2,000 (1 - 30%)
A. Acquisition Analysis at 1 July 2013
Net Fair Value of Identifiable Assets = $380,000 + $70,000 + $62,000 (equity)
+ $2,000 (1 - 30%) (inventory)
+ $3,000 (1 - 30%) (land)
+ $4,000 (1 - 30%) (plant)
- $1,000 (1 - 30%) (acc. receivable)
= $517,600
Consideration Transferred = $600,000 - 10,000 (dividend receivable) + 24,000 (brands)
= $614,000
Goodwill $96,400
Why it needs to 1-30% in land inventory and plant
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