Eagle Ltd Acquired All the Issued Share Capital of Rock

question 11

Multiple Choice

Eagle Ltd acquired all the issued share capital of Rock Ltd on 1 May 20X1.Rock Ltd's shareholders equity (all at fair value) at that date was as follows:
$\begin{array}{llcc} &\text { 000s} & \\ \text { Paid up capital } &\$3000\\ \text {General reserve } &\$1000\\ \text { Retained profits } &\$500\\\end{array}$

What was the cost of acquisition incurred by Eagle Ltd, if the bargain purchase gain was $250 000?

• A)$4 750 000
• B)$3 750 000
• C)$3 250 000
• D)$4 250 000

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Definitions:

Acr/o

A prefix in medical terminology indicating extremities, peak, or topmost.

Posterior Lobe

The back part of an organ or gland, often referring specifically to the posterior lobe of the pituitary gland in the brain.

Prolactin Hormone

A hormone produced by the anterior pituitary gland that stimulates milk production following childbirth.

Adrenal Cortex

The outer layer of the adrenal glands that produces corticosteroid hormones, including cortisol and aldosterone, which regulate metabolism, immune response, and water and salt balance.