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if fair value lower than book value, how to prepare a acquisition analysis? for example,A acquire all share capital of B, tax rate is 30%,
if fair value lower than book value, how to prepare a acquisition analysis?
for example,A acquire all share capital of B, tax rate is 30%, book value of account receivable is $16,000 but fair value is $12,700, brand's book value is $10,000 but fair value is $24,000. Equity of B Ltd consisted of:
share capital = $350,000
General reserve = $100,000
Retained earning = $60,000
how to prepare a acquisition analysis? Is that $350,000+$100,000+60,000-$3,300*(1-30%)-$24,000=$483,690?
please answer with calculation.
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