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What is the cost of acquisition of Fine Ltd

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Reference no: EM132758373

Question - Fine Ltd issued 950,000 shares of Fine Ltd to the shareholders of Ark Ltd. At acquisition date, the fair value of the ordinary shares of Fine Ltd were $2.65 and the fair value of the ordinary shares of Ark Ltd were $5.00.

Ark Ltd's shareholders' equity on acquisition date consisted of the following:

Issued capital $3,800,000

Retained earnings $1,200,000

Required - What is the cost of acquisition of Fine Ltd?

Reference no: EM132758373

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