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Byron Limited estimated the net present value of future cash flows from specialised equipment acquired under a business combination to be $120000. A replacement cost
Byron Limited estimated the net present value of future cash flows from specialised equipment acquired under a business combination to be $120000. A replacement cost for the equipment is estimated to be $132000. The equipment has been independently appraised at a value of $122000. A similar item of equipment cost the acquirer $118000 last year. What is the value for recognition of the equipment under a business combination?
A.$132000.
B.$120000.
C.$118000.
D.$122000.
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