Unity Limited Acquired 100% of the Share Capital of Bellvista

Multiple Choice

Unity Limited acquired 100% of the share capital of Bellvista Limited. Bellvista had issued share capital of $200 000. The book values of Bellvista Limited's assets were: buildings $100 000, machinery $120 000. The fair values of these assets were: buildings $180 000, machinery $140 000. The tax rate is 30%. The fair value of the identifiable net assets is:

A) $270 000.
B) $220 000.
C) $320 000.
D) $200 000.