6 City Infrastructure Holdings Ltd (CIH) acquired 100% of the 300,000 issued shares in Network Maintenance Services (NMS) on 1 July 2021. The consideration provided to shareholders of NMS consisted of $1.20 in cash plus 1 share in CIH for each share held. The fair value of the CIH shares on the date of acquisition was $1.50. At the date of acquisition the records of NMS included the following information: Share Capital $300,000.00 General Reserve $30,000.00 Retained Earnings $410,000.00 All of the assets and liabilities in the records of NMS were considered to be fairly valued at the acquisition date with the exception of Equipment. Question : what is the total value of pre-acquisition capital and reserves?
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City Infrastructure Holdings Ltd (CIH) acquired 100% of the 300,000 issued shares in Network Maintenance Services (NMS) on 1 July 2021.
The consideration provided to shareholders of NMS consisted of $1.20 in cash plus 1 share in CIH for each share held. The fair value of the CIH shares on the date of acquisition was $1.50. At the date of acquisition the records of NMS included the following information:
Share Capital $300,000.00
General Reserve $30,000.00
All of the assets and liabilities in the records of NMS were considered to be fairly valued at the acquisition date with the exception of Equipment.
Question : what is the total value of pre-acquisition capital and reserves?
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What was the consideration paid by CIH for the Investment in NMS
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