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  3. cook ltd acquired all the issued share capital of

Cook Ltd acquired all the issued share capital of Zac Ltd on 1 July 20X1....

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Accounting

Cook Ltd acquired all the issued share capital of Zac Ltd on 1 July 20X1. Zac Ltds shareholders equity at that date was as follows: 000s Paid up capital $4,500 General reserve $3,000 Asset revaluation reserve $500 Retained profits $1,500 At 1 July 20X1, Cook considered Zac Ltd had unrecorded licenses with a fair value of $1,500,000. What was the cost of acquisition (the fair value of the consideration paid) incurred by Cook Ltd, if $500,000 of consolidation goodwill from the business combination was recognised in the consolidated financial statements prepared on 1 July 20X1?

Select one: $11,500,000 $10,000,000 $10,500,000 $9,000,000

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