Use the Following Information to Answers

question 16

Multiple Choice

Use the following information to answers
Edward Ltd acquires all issued shares in Jacob Ltd for $220 000 paid in cash. Equity of Jacob Ltd consists of $130 000 share capital and $45 000 retained earnings. At acquisition date, Jacob Ltd owns a block of land, which it initially purchased at $200 000. The fair value of the land is $240 000. The carrying amount of Jacob Ltd's property, plant and equipment is $130 000 with accumulated depreciation of $55 000. The fair value of the property, plant and equipment is $95 000.
-If the tax rate is 30%, what would be the amount of Business Combination Value Reserve that must be recognised at the acquisition date?

• A) $42 000
• B) $45 000
• C) $52 500
• D) $60 000

---

Definitions:

Proprietary Data Programming

A process involving the programmatic manipulation of data that is owned by a particular entity or individual, often kept confidential.

Snapshot Data

Instantaneous data or information captured at a specific moment in time, often used in diagnostics or data analysis.

ISO Wiring Color Code

An international standard defining the colors and functions of electrical wiring used in machinery and automotive applications to ensure safety and interoperability.

General Ground Wires

Electrical wires used to establish a safe path for electricity to return to the ground, helping to prevent electric shocks and maintain system safety.