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Costs of BC (2) Tent Ltd acquired a business from Cabin Ltd. On the date of acquisition the following costs were incurred: 1. $2,400 for Tent Ltd to set up the negotiations and to have asset ownership documents changed. 2. $1,800 for Cabin Ltd to liquidate the company. 3. $1,000 share issue costs for Tent Ltd to issue shares as part of the consideration. Costs that should NOT be included in the calculation of total consideration to be transferred include Select one: a. 1. and 3. only Ob. 3. only O c. 2. only d. 1., 2., and 3.

Costs of BC (2) Tent Ltd acquired a business from Cabin Ltd. On the date of acquisition the following costs were incurred: 1. $2,400 for Tent Ltd to set up the negotiations and to have asset ownership documents changed. 2. $1,800 for Cabin Ltd to liquidate the company. 3. $1,000 share issue costs for Tent Ltd to issue shares as part of the consideration. Costs that should NOT be included in the calculation of total consideration to be transferred include Select one: a. 1. and 3. only Ob. 3. only O c. 2. only d. 1., 2., and 3.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Costs of BC (2) Tent Ltd acquired a business from Cabin Ltd. On the date of acquisition the following costs were incurred: 1. $2,400 for Tent Ltd to set up the negotiations and to have asset ownership documents changed. 2. $1,800 for Cabin Ltd to liquidate the company. 3. $1,000 share issue costs for Tent Ltd to issue shares as part of the consideration. Costs that should NOT be included in the calculation of total consideration to be transferred include Select one: a. 1. and 3. only b. 3. only O c. 2. only Od. 1., 2., and 3.
Transcribed Image Text:Costs of BC (2) Tent Ltd acquired a business from Cabin Ltd. On the date of acquisition the following costs were incurred: 1. $2,400 for Tent Ltd to set up the negotiations and to have asset ownership documents changed. 2. $1,800 for Cabin Ltd to liquidate the company. 3. $1,000 share issue costs for Tent Ltd to issue shares as part of the consideration. Costs that should NOT be included in the calculation of total consideration to be transferred include Select one: a. 1. and 3. only b. 3. only O c. 2. only Od. 1., 2., and 3.
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