Watson Limited Acquires the Net Assets of Lake Limited for a Cash

question 22

Multiple Choice

Watson Limited acquires the net assets of Lake Limited for a cash consideration of $160 000. One half is to be paid on acquisition date and the other half is payable in one year's time. The appropriate discount rate is 8% p.a. The present value of the cash outflow in one year's time is:

• A) $800 000
• B) $74 072
• C) $86 402
• D) $72 728

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Definitions:

Try Block

A block of code that is tested for errors while it is being executed.

Catch Blocks

Sections of code in many programming languages that are used to handle exceptions or errors during program execution.

NegativeNumberException

A custom exception that could be created to handle or indicate the use of an illegal negative number in a specific context.

Catch Block

A section of code used to handle an exception that occurs in a try block in Java.