Ying Limited Acquires the Net Assets of Yang Limited for a Cash

question 5

Multiple Choice

Ying Limited acquires the net assets of Yang Limited for a cash consideration of $50 000. One half is to be paid on acquisition date and one half is payable in one year's time. The appropriate discount rate is 5% p.a. The present value of the cash outflow in one year's time is:

• A) $23 810.
• B) $25 000.
• C) $26 190.
• D) $30 000.

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Definitions:

Kohlberg

Refers to Lawrence Kohlberg, an American psychologist best known for his theory of stages of moral development.

Moral Development

The process through which individuals acquire values, behaviors, and thoughts that distinguish right from wrong.

Problem-solving Abilities

The capacity to identify, define, and solve problems through logical and systematic approaches.

Conservation Skills

Conservation skills refer to the ability to understand that certain properties of objects, such as volume or mass, remain the same despite changes in the form or arrangement of the objects.