On 1 Jan 2022, A Ltd acquired all the outstanding shares of B Ltd when...

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Accounting

On 1 Jan 2022, A Ltd acquired all the outstanding shares of B Ltd when the equity of B Ltd consisted of share
capital of $10,000(10,000 shares) and retained earnings of $4,000. The acquisition was made on an exdividend basis when B Ltds dividend payable was $1,000. Details of the acquisition are as follows.

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