Xana Limited paid $110 000 for 60% of the shares in Yama Limited. At the date of acquisition Yama Limited had share capital of $100 000 and retained earnings of $36 000 and all of Yama Limited's assets and liabilities were recorded at fair value, except for land that was recorded at an amount less than the fair value by $20 000. The company tax rate was 30%. The fair value of identifiable net assets acquired by Xana Limited amounted to: $60 000. b. $90 000. a. C. d. $110 000. $150 000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Xana Limited paid $110 000 for 60% of the
shares in Yama Limited. At the date of
acquisition Yama Limited had share capital
of $100 000 and retained earnings of $36
000 and all of Yama Limited's assets and
liabilities were recorded at fair value,
except for land that was recorded at an
amount less than the fair value by $20 000.
The company tax rate was 30%. The fair
value of identifiable net assets acquired by
Xana Limited amounted to:
$60 000.
b. $90 000.
$110 000.
d. $150 000.
a.
C.
Transcribed Image Text:Xana Limited paid $110 000 for 60% of the shares in Yama Limited. At the date of acquisition Yama Limited had share capital of $100 000 and retained earnings of $36 000 and all of Yama Limited's assets and liabilities were recorded at fair value, except for land that was recorded at an amount less than the fair value by $20 000. The company tax rate was 30%. The fair value of identifiable net assets acquired by Xana Limited amounted to: $60 000. b. $90 000. $110 000. d. $150 000. a. C.
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