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On 1 July 2021, BL Ltd acquired all the issued shares of UE Ltd. At acquisition date, the identifiable assets and liabilities of UE Ltd
On 1 July 2021, BL Ltd acquired all the issued shares of UE Ltd. At acquisition date, the identifiable assets and liabilities of UE Ltd were recorded at fair value except for the following: Book value Inventories $70 000 Plant and equipment (cost $200 000) $110 000 Fair value $90 000 $160 000 The plant and equipment had a remaining useful life of 5 years. The company tax rate is 30%. Assume the consolidation of BL Ltd and UE Ltd is being prepared at the acquisition date of 1 July 2021. What is the business combination valuation entry for plant and equipment? a. DR. Plant and Equipment $50 000 CR. BCVR $50 000 b. DR. Plant and Equipment
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