Oliveira Limited Estimated That the Net Present Value of Future

question 6

Multiple Choice

Oliveira Limited estimated that the net present value of future cash flows from Equipment acquired in a business combination is $15 000.The cost of replacing the Equipment is estimated to be $18 000.The Equipment has been independently appraised at a value of $14 000.A similar item of Equipment cost the acquirer $19 000 last year.The fair value at which the Equipment will be recognised when recording the business combination is:

• A)$14 000
• B)$15 000
• C)$18 000
• D)$19 000.

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Definitions:

Electrical Signals

Pulses of electric current that transmit information within the nervous system and between electronic devices.

Temporal Lobe's

Pertains to the lobes located on the sides of the brain, primarily involved in processing auditory information and encoding memory.

Auditory Cortex

The part of the brain that processes auditory information, enabling individuals to hear and interpret sounds.

Thalamus

A part of the brain that acts as a relay station, processing and transmitting sensory and motor signals to the cerebral cortex.