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Synchronicity Limited acquired the business of Mondatta Limited for $125 000. Mondatta Limited's balance sheet consist of the following accounts along with their carrying amounts
Synchronicity Limited acquired the business of Mondatta Limited for $125 000. Mondatta Limited's balance sheet consist of the following accounts along with their carrying amounts and the estimated fair values of the assets and liabilities immediately before acquisition date: Carrying amount ($) Fair value ($ Accounts receivable 17,000 17,000 30,000 35,000 65,000 75,000 Inventory Building (net) Accounts Payable Retained Earnings Share Capital 15,000 15,000 10,000 87,000 Mondatta Limited's also disclosed a contingent liability in its notes relating to a guarantee for a loan of $5,000. At the date of acquisition it was only a 35% chance that the guarantee would be invoked. The net value of identifiable assets and liabilities acquired by Synchronicity Limited would be: O a. $125.000 b. $92,000 . $112.000 O d. $110,250 O e. $90.250
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