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Question 2: (10 marks) Enterprise Ltd sold all of its assets and liabilities to Kirk Ltd on 1 July 2020. The Balance sheet of Enterprise
Question 2: (10 marks) Enterprise Ltd sold all of its assets and liabilities to Kirk Ltd on 1 July 2020. The Balance sheet of Enterprise Ltd at the date of acquisition was as follows: The Plant \& Machinery had a cost of $38,000 and accumulated depreciation of $18,000. The fair value of the Plant \& Machinery was $30,000. All other assets are shown at fair value. The acquisition was satisfied by the issue of 10,0,00 ordinary shares (fully paid) in Kirk Ltd. As at 1 July 2020 the ordinary shares in Kirk Ltd had a fair value of $18.50 each. Assume the identifiable assets and liabilities acquired constituted a business. Required: Calculate the goodwill /gain on bargain purchase, show your workings. Marks are awarded for clear formatting. (10 marks) Show your calculation of goodwill /bargain on purchase for question 2 in the table below, expand the table as needed
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