MMM company acquired 85% of the ordinary shares of CF Ltd. The net assets were...
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MMM company acquired 85% of the ordinary shares of CF Ltd. The net assets were fairly valued on 1 January 2021 except for machinery that were undervalued by R450 000. The machine was purchased on 1 January 2020 for R1 000 000 and had a useful life of 6 years. No adjustments at acquisition for the above matter. Assume a tax rate of 28% REQUIRED: Prepare the journal entries (with narrations) for the year ended 31 December 2022
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