In business acquisition, the value analysis is done in two ways. First, by calculating the asset method, where in company net worth is calculated using book values or fair values of assets and liabilities. Secondly by using discounted cash flow method. To Prepare: A value analysis and a determination of excess schedule for the investment in FA A/c.

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Chapter 3, Problem 3.17.1P

To determine

Introduction: In business acquisition, the value analysis is done in two ways. First, by calculating the asset method, where in company net worth is calculated using book values or fair values of assets and liabilities. Secondly by using discounted cash flow method.

To Prepare: A value analysis and a determination of excess schedule for the investment in FA A/c.

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