A Ltd acquires all the net assets of B Ltd and applies the requirements of AASB 3 Business Combinations. Details regarding the net assets of B Ltd are as follows:

	Carrying amount	Fair value
	$	$
Assets
Cash	50,000	50,000
Furniture	20,000	15,000
Fittings	40,000	20,000
Accounts receivable	25,000	20,000
Goodwill	10,000	10,000
Liabilities
Accounts payable	20,000	20,000

Questions..... >>>>>>>>>>>>>

Assume A Ltd issues 100,000 shares at $1.50 each to acquire the net assets of B Ltd. The acquisition analysis would disclose the fair value of the identifiable net assets of B Ltd and the consideration transferred as:

Fair value of identifiable net assets $125,000 Consideration transferred $100,000
		Fair value of identifiable net assets $85,000 Consideration transferred $150,000
		Fair value of identifiable net assets $85,000 Consideration transferred $100,000
		Fair value of identifiable net assets $95,000 Consideration transferred $150,000