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Fresco Ltd Acquires All the Issued Capital of Indoor Ltd

Question 44

Multiple Choice

Fresco Ltd acquires all the issued capital of Indoor Ltd for a cash payment of $1,000,000 on 30 June 2005. The balance sheet of Indoor Ltd at purchase date is:
Fresco Ltd acquires all the issued capital of Indoor Ltd for a cash payment of $1,000,000 on 30 June 2005. The balance sheet of Indoor Ltd at purchase date is:   Assuming the assets of Indoor Ltd are at fair value, what is the entry to eliminate the investment in Fresco Ltd? A)    B)    C)    D)    E)  None of the given answers.
Assuming the assets of Indoor Ltd are at fair value, what is the entry to eliminate the investment in Fresco Ltd?


A) Fresco Ltd acquires all the issued capital of Indoor Ltd for a cash payment of $1,000,000 on 30 June 2005. The balance sheet of Indoor Ltd at purchase date is:   Assuming the assets of Indoor Ltd are at fair value, what is the entry to eliminate the investment in Fresco Ltd? A)    B)    C)    D)    E)  None of the given answers.
B) Fresco Ltd acquires all the issued capital of Indoor Ltd for a cash payment of $1,000,000 on 30 June 2005. The balance sheet of Indoor Ltd at purchase date is:   Assuming the assets of Indoor Ltd are at fair value, what is the entry to eliminate the investment in Fresco Ltd? A)    B)    C)    D)    E)  None of the given answers.
C) Fresco Ltd acquires all the issued capital of Indoor Ltd for a cash payment of $1,000,000 on 30 June 2005. The balance sheet of Indoor Ltd at purchase date is:   Assuming the assets of Indoor Ltd are at fair value, what is the entry to eliminate the investment in Fresco Ltd? A)    B)    C)    D)    E)  None of the given answers.
D) Fresco Ltd acquires all the issued capital of Indoor Ltd for a cash payment of $1,000,000 on 30 June 2005. The balance sheet of Indoor Ltd at purchase date is:   Assuming the assets of Indoor Ltd are at fair value, what is the entry to eliminate the investment in Fresco Ltd? A)    B)    C)    D)    E)  None of the given answers.
E) None of the given answers.

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