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AX holds shares in two other entities, AS and AA. AX purchased 100% of AS shares on 1 April 2009 for $740,000, when the fair
AX holds shares in two other entities, AS and AA. AX purchased 100% of AS shares on 1 April 2009 for $740,000, when the fair value was $75,000 more than book value. The excess of fair value over book value was attributed to land held by AS. Page 6 of 11 At 1 April 2009 the retained earnings of AS showed a debit balance of $72,000. AX purchased 120,000 ordinary shares in AA on 1 April 2009 for $145,000 when
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