Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On 31 December 20X0, GCC acquired 100% of PKL. On the acquisition date, PKL had a customer list, but this has not been recognised as
On 31 December 20X0, GCC acquired 100% of PKL. On the acquisition date, PKL had a customer list, but this has not been recognised as an intangible asset in PKL's statement of financial position. The directors of PKL, however, estimate that a total of D$300,000 had been spent building up this customer list. On the acquisition date, as part of the due diligence exercise, external specialists valued PKL's customer list at D$700,000 although the directors of GCC believe that it was worth closer to D$900,000. What amount should GCC include in its consolidated statement of financial position as at 31 December 20X0 for the customer list? Solution A.D$0 B.D$300,000 C.D$700,000 D.D$900,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started