What is the cost of the business combination

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On 31 March 2019, Blue Ltd purchases 100% of Violet Ltd in exchange for $7,500,000 cash consideration and 21,000,000 ordinary voting shares of Blue Ltd. The cost value of one Blue Ltd share was $4 but the fair value on March 31 is $3. The exchange resulted in Blue Ltd acquiring 20,000,000 of Violet Ltd's ordinary voting shares. The cost value of one Violet Ltd share was $2 but the fair value on March 31 is $3. The incidental legal and accounting fees directly attributable to the acquisition are $300,000. What is the cost of the business combination?

Reference no: EM132607585

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