Johnson Limited Estimated the Net Present Value of Future Cash

Multiple Choice

Johnson Limited estimated the net present value of future cash flows from specialised Plant acquired under a business combination to be $30 000.A replacement cost for the Plant is estimated to be $33 000.The Plant has been independently appraised at a value of $31 000.A similar item of Plant cost the acquirer $29 000 last year.What is the fair value for recognition of the Plant under a business combination?

A) $29 000
B) $30 000
C) $33 000
D) $31 000.