Multiple Choice
When Wayne Ltd acquired 100% of the share capital of Carol Ltd, the carrying amount of Carol Ltd's machinery was $200 000. The fair value of the machinery on acquisition date was $160 000. The company tax rate was 30%. What is the amount of the business combination valuation reserve that will be recognised on consolidation?
A) $40 000
B) $12 000
C) $28 000
D) $160 000
Correct Answer:
Verified
Correct Answer:
Verified
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