Company X Acquired Company Y When the Carrying Value of Company

question 1

Multiple Choice

Company X acquired Company Y when the carrying value of Company Y's plant was $50 000.The fair value of the plant on acquisition date was $65 000.The company tax rate was 30%.How much is the amount of the business combination valuation reserve that must be recognised?

• A)$3 500
• B)$10 500
• C)$15 000
• D)$65 000

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