What the total bcvr generated by business combination

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Question - Leather Limited acquired 100% of the share capital of Vinyl Limited for $259 000. Vinyl had total shareholder's equity of $200 000. There is not previously recognised goodwill in Vinyl Limited's accounting book. All assets and liabilities in Vinyl Limited's accounting book are carried at fair value except for the following items:

Asset

Carrying amount

Fair value

Building

150 000

180 000

Machinery

90 000

100 000

Vinyl Limited has not previously recorded an internally generated trademark with a fair value of $40 000 and a contingent liability related to a warranty with a fair value of $10 000. The tax rate is 30%. What the total BCVR generated by business combination valuation entries?

Reference no: EM133163273

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