During August 20X5,Tiberius Ltd acquired the issued capital of Capri Ltd in exchange for 1 000 000 shares in Tiberius Ltd with a fair value of $10 per share.Share issue costs amounted to $400 000.Tiberius Ltd also took over the loan payable by Capri Ltd to Ethereal Finance Ltd of $2 000 000.The cost of the investment is:
A) $10 000 000.
B) $10 300 000.
C) $12 000 000.
D) none of the above.
Correct Answer:
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