Question
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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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
8th Edition
1088
