Marion Limited paid $180 000 for 60% of the shares in Lucia Limited. At the date of acquisition Lucia Limited had share capital of $160 000 and retained earnings of $90 000 and all of Lucia Limited's assets and liabilities were recorded at fair value, except for plant that had a fair value of $40 000 more than its carrying amount. The company tax rate was 30%. The fair value of identifiable net assets acquired by Marion Limited amounted to:
A) $166 800
B) $174 000
C) $178 000
D) $180 000

Question

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The Answer of Marion Limited paid $180 000 for 60% of the shares in Lucia Limited. At the date of acquisition Lucia Limited had share capital of $160 000 and retained earnings of $90 000 and all of Lucia Limited's assets and liabilities were recorded at fair value, except for plant that had a fair value of $40 000 more than its carrying amount. The company tax rate was 30%. The fair value of identifiable net assets acquired by Marion Limited amounted to:
A) $166 800
B) $174 000
C) $178 000
D) $180 000

Marion Limited Paid $180 000 for 60% of the Shares