E Company Ltd, a reporting entity, purchases all the issued shares of D Company Pty Ltd for $2,100,000. The net assets of D Company Pty Ltd at the date of acquisition consist of land $2,500,000 and a liability of $400,000 with these values representing their respective fair values. E Company Ltd will record the acquisition in its separate accounting records as follows: O a. Dr. Investment in D Company Pty Ltd $2,100,000 Cr. Issued Capital $2,100,000 Ob. None of these options is correct Oc Dr. Investment in D Company Pty Lbd $2.100,000 Cr. Cash $2,100,000 Od Dr. Land $2.500,000 Cr. Liability $400.000 Cr. Cash $2,100.000

E Company Ltd, a reporting entity, purchases all the issued shares of D Company Pty Ltd for $2,100,000. The net assets of D Company Pty Ltd at the date of acquisition consist of land $2,500,000 and a liability of $400,000 with these values representing their respective fair values. E Company Ltd will record the acquisition in its separate accounting records as follows: O a. Dr. Investment in D Company Pty Ltd $2,100,000 Cr. Issued Capital $2,100,000 Ob. None of these options is correct Oc Dr. Investment in D Company Pty Lbd $2.100,000 Cr. Cash $2,100,000 Od Dr. Land $2.500,000 Cr. Liability $400.000 Cr. Cash $2,100.000

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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