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Company A and Company B are two subsidiaries of the same parent company. Company A and Company B entered into a merger agreement whereby Company

Company A and Company B are two subsidiaries of the same parent company. Company A and Company B entered into a merger agreement whereby Company A acquired 80% of the equity interest in Company B for fixed assets, intangible assets and bank deposits as consideration for the merger. The carrying value of intangible assets invested was $7 million and no provision for impairment of intangible assets was made. Bank deposits of $15 million were invested.

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