During June 20X5,Cassius Ltd Acquired All of the Share Capital

Multiple Choice

During June 20X5,Cassius Ltd acquired all of the share capital of Cicero Ltd in exchange for 1,000,000 shares with a market value of $10 per share,$5,000,000 cash payable on June 30 20X5 plus a further $6,050,000 payable on June 30 20X7.Assume an interest rate of 10%.A consultation fee of $1,000,000 was paid to an independent firm for their assistance in the acquisition.A special department was set up in Cassius Ltd to oversee the acquisition and the estimated costs of this department that were reliably attributable to the acquisition amounted to $300,000.The cost of acquisition was (rounded to nearest $'000) :

A) $21,000,000
B) $22,350,000
C) $22,050,000
D) $21,300,000