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A Ltd Acquires 100% of Shares of B Ltd for $195

Question 2

Multiple Choice

A Ltd acquires 100% of shares of B Ltd for $195 000,financed by an issue of 100 000 x $1.50 shares and $45 000 cash.B Ltd has cash balances of $35 000 at the date of acquisition.Which amount will A Ltd record for cash flow from investing in its consolidated statement of cash flows?


A) ($195 000)
B) ($450 000)
C) ($10 000)
D) ($35 000)

Correct Answer:

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