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Reic Ltd prepared an acquisition analysis and calculated a gain on bargain purchase of $ 1 6 0 , 0 0 0 ( being $

Reic Ltd prepared an acquisition analysis and calculated a gain on bargain purchase
of $160,000(being $112,000 cash paid less the subsidiarys equity acquired of $272,000) to be reported as income in the accounts. Is this calculation correct? What would be the journal entry? Please explain in detail and refer to AASBs, GAAPs and other legislation for this explanation.

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