On 1 July 2021, BL Ltd acquired all the issued shares of UE Ltd. At...
70.2K
Verified Solution
Link Copied!
Question
Accounting
On 1 July 2021, BL Ltd acquired all the issued shares of UE Ltd. At acquisition date, the identifiable assets and liabilities of UE Ltd were recorded at fair value except for the following: Book value Inventories $70 000 Plant and equipment (cost $200 000) $110 000 Fair value $90 000 $160 000 The plant and equipment had a remaining useful life of 5 years. The company tax rate is 30%. Assume the consolidation of BL Ltd and UE Ltd is being prepared at the acquisition date of 1 July 2021. What is the business combination valuation entry for plant and equipment? a. DR. Plant and Equipment $50 000 CR. BCVR $50 000 b. DR. Plant and Equipment
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.