Jack acquired 80% of the voting equity shares of Jill. Jill had the following equity at the date of acquisition. $ Ordinary share $1 1,000,000
Jack acquired 80% of the voting equity shares of Jill. Jill had the following equity at the date of acquisition. $ Ordinary share $1 1,000,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 3CE
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Question
Jack acquired 80% of the voting equity shares of Jill. Jill had the following equity at the date of acquisition.
$
Ordinary share $1 1,000,000
The cost of the investment was $1,500,000 and the fair value of the non-controlling interest at acquisition was $360,000.
What was the
Select one:
a.
$420,000
b.
$60,000
c.
$300,000
d.
$48,000
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