Oliveira Limited Estimated That the Net Present Value of Future

Multiple Choice

Oliveira Limited estimated that the net present value of future cash flows from Equipment acquired in a business combination is $15 000. The cost of replacing the Equipment is estimated to be $18 000. The Equipment has been independently appraised at a value of $14 000. A similar item of Equipment cost the acquirer $19 000 the previous year. The fair value at which the Equipment will be recognised when recording the business combination is:

A) $14 000
B) $15 000
C) $18 000
D) $19 000.