On 1 July 2022, Ambrose Ltd acquired all voting rights of Beatrice Ltd by purchasing its shareholders' equity for $40,000 cash and issuing 50,000 shares at $1 each. Beatrice had $66,000 share capital and $10,000 retained earnings at that date. On 1 July 2022, the following assets were at carrying value on the balance sheet, which differed from fair value.
Carrying amount $ Fair value $
Plant ($150,000)
125,000
130,000
Patent
60,000
75,000
Inventory
20,000
25,000
Acquisition analysis ?
