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Forrest Ltd acquired 1 0 0 % of the share capital of Desert Ltd when the carrying value of Desert Ltd s equipment was $

Forrest Ltd acquired 100% of the share capital of Desert Ltd when the carrying value of Desert Ltds equipment was $75000. The fair value of the equipment on acquisition date was $90000. The company tax rate was 30%. What is the amount of the business combination valuation reserve that must be recognised on consolidation?
Question 4Select one:
a.
$15000
b.
$10500
c.
$3500
d.
$90000

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