Wendy Limited paid $120 000 for 75% of Yum Limited. At the date of acquisition Yum Limited had equity as follows:
-share capital of $100 000
-retained earnings of $50 000
-other reserves of $30 000.
All of Yum Limited's assets and liabilities were recorded at fair value. The fair value of identifiable net assets acquired by Wendy Limited amounted to:

Question

Wendy Limited paid $120 000 for 75% of Yum Limited. At the date of acquisition Yum Limited had equity as follows: 
-share capital of $100 000
-retained earnings of $50 000
-other reserves of $30 000.
All of Yum Limited's assets and liabilities were recorded at fair value. The fair value of identifiable net assets acquired by Wendy Limited amounted to:

Quizplus · Accepted Answer

The Answer is C

Wendy Limited Paid $120 000 for 75% of Yum Limited