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A Co acquired a controlling interest in B Co and entered into the following transactions on acquisition date, 1 July 2 0 x 3 .
A Co acquired a controlling interest in B Co and entered into the following transactions on acquisition date, July x
Cash payment to owners of B Co $
Loan payable to banks to finance the acquisition of B Co $
Fair value of shares issued to owners of B Co $
Book value of shares issued to owners of B Co $
Cost of issuing equity $
Deferred consideration, payable at the end of years $
Present value of deferred consideration at an interest rate of pa $
Required:
Prepare the journal entries that A Co would record to reflect the above transactions on July x Unamortized discount or premium, where applicable, should be shown separately.
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