AB CO paid CU3,000,000,000 for 80% ownership of XY CO on January 1 19X8. The book value and fair value of XY CO's net assets are as follows: Current assets Clean Equipment Fixed Assets-Net Liabilities Net Assets BOOK VALUE CU1.000.000.000 2.000.000.000 1.000.000.000 (1.500.000.000) Rp 2.500.000.000 FAIR VALUE CU1.500.000.000 3.000.000.000 Rp 1.000.000.000 (1.500.000.000) Rp 4.000.000.000 Requested: Prepare a list for allocating the cost differential / Book value to net assets XY CO

AB CO paid CU3,000,000,000 for 80% ownership of XY CO on January 1 19X8. The book value and fair value of XY CO's net assets are as follows: Current assets Clean Equipment Fixed Assets-Net Liabilities Net Assets BOOK VALUE CU1.000.000.000 2.000.000.000 1.000.000.000 (1.500.000.000) Rp 2.500.000.000 FAIR VALUE CU1.500.000.000 3.000.000.000 Rp 1.000.000.000 (1.500.000.000) Rp 4.000.000.000 Requested: Prepare a list for allocating the cost differential / Book value to net assets XY CO

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 44P

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