On 1 July 2018, Ghostbusters Ltd acquired all the shares of Bat Ltd
On 1 July 2018, Ghostbusters Ltd acquired all the shares of Bat Ltd for $330 000 on an ex-div. basis. On this date, the equity and liabilities of Bat Ltd included the following balances: Share capital $ 200 000 General reserve 25 000 Retained earnings 45 000 Dividend payable 10 000 Provisions 169 500 At acquisition date, all the identifiable assets and liabilities of Bat Ltd were recorded at amounts equal to fair value except for: Carrying amount Fair value Plant and equipment (cost $300 000) $186 000 $190 000 Trademark 100 000 110 000 Inventories 70 000 80 000 Land 50 000 70 000 Goodwill 25 000 55 000 Machinery (cost $18 000) 15 000 16 000…
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