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Koala Ltd acquired 100% of the share capital of Dingo Ltd when the carrying value of Dingo Ltd.s plant and machinery was $200 000. The

Koala Ltd acquired 100% of the share capital of Dingo Ltd when the carrying value of Dingo Ltd.s plant and machinery was $200 000. The fair value of the plant on acquisition date was $270 000. The company tax rate was 30%. What is the amount of the business combination valuation reserve that must be recognised on consolidation?

Select one:

$270 000

$49 000

$21 000

$70 000

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