Question
Xin Limited paid $12 000 for 75% of the shares in Yan Limited. At the date of acquisition Yan Limited had equity as follows: Share
Xin Limited paid $12 000 for 75% of the shares in Yan Limited. At the date of acquisition Yan Limited had equity as follows:
Share capital $10 000
Retained earnings $5 000
Other reserves $3 000
All of Yan Limiteds assets and liabilities were recorded at fair value. The fair value of identifiable net assets acquired by Xin Limited amounted to:
| a. | $9 750. | |
| b. | $12 000. | |
| c. | $13 500. | |
| d. | $18 000. |
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ISE Fundamental Managerial Accounting Concepts
Authors: Thomas P. Edmonds, Christopher Edmonds, Mark A. Edmonds, Philip R. Olds
10th Edition
1265045925, 9781265045920
