Patrick Limited Paid $11 000 for 80% of the Shares

Multiple Choice

Patrick Limited paid $11 000 for 80% of the shares in Rachel Limited. At the date of acquisition Rachel Limited had equity as follows: Share capital $9 000
Retained earnings $2 500
Other reserves $4 000
All of Rachel Limited's assets and liabilities were recorded at fair value. The fair value of identifiable net assets acquired by Patrick Limited amounted to:

A) $8 800
B) $10 000
C) $11 000
D) $12 500