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MCQ Pls Help Company ABC acquired the identifiable assets and liabilities of XYZ for a cash consideration of $265,000. The items acquired are listed as
MCQ Pls Help
Company ABC acquired the identifiable assets and liabilities of XYZ for a cash consideration of $265,000. The items acquired are listed as follows:
$ | Carrying value | Fair value |
Property, plant and equipment | 140,000 | 148,000 |
Inventories | 80,000 | 80,000 |
Accounts receivables | 60,000 | 52,000 |
Patents | - | 30,000 |
Accounts payables | 40,000 | 40,000 |
Deferred tax liabilities | - | 6,460 |
Net assets | 240,000 | 263,540 |
The difference on acquisition is:
1. Goodwill of $25,000.
2. Gain on bargain purchase of $25,000.
3. Goodwill of $1,460.
4. Gain on bargain purchase of $1,460.
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