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 value for recognition of the plant under a business combination?

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