Multiple Choice
Sippy Ltd acquired 100% of the share capital of Downs Ltd when the carrying value of Downs Ltd's plant and machinery was $100 000. The fair value of the plant on acquisition date was $150 000. The company tax rate was 30%. What is the amount of the business combination valuation reserve that must be recognised on consolidation?
A) $15 000
B) $35 000
C) $50 000
D) $150 000
Correct Answer:
Verified
Correct Answer:
Verified
Q40: Which of the following assets cannot be
Q41: An acquisition analysis is prepared at acquisition
Q42: In preparing the consolidated financial statements, no
Q43: In the case of a reverse acquisition,
Q44: When Wayne Ltd acquired 100% of the
Q45: The pre-acquisition entry is necessary to:<br>A) avoid
Q46: A reverse acquisition occurs when the legal
Q47: Which of the following statements is correct?<br>A)
Q48: Which of the following statements is incorrect?<br>A)
Q50: One year after acquisition date, the goodwill