On 1 January 20x1, Company ALPHA acquired 100% control over the net assets of Company...
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Accounting
On 1 January 20x1, Company ALPHA acquired 100% control over the net assets of Company BETA's Malaysian business division (division is not a legal entity). The fair values and book values of Company BETAs assets and liabilities are shown below:
Cashs book value is $40k and fair value is $40k.
Accounts receivables book value is $190k and fair value is $165k.
Inventorys book value is $320k and fair value is $310k.
Freehold lands book value is $3.5million and fair value is $4.2million
Buildings and equipments book value is $800k and fair value is $950k.
Accumulated depreciations book value and fair value both is $250k.
Total assetss book value is $4.6 million and fair value is $5.415 million
Accounts payables book value is $130k and fair value is $130k.
At the date of the business combination, Company ALPHA transferred the following assets to Company BETA as consideration: cash $1,000,000, land with carrying value of $4,000,000 and fair value of $4,800,000, issued shares with fair value of $2,000,000.
Assume tax rate at 20%.
What is the inventory adjustment in Company ALPHAs separate financial statement from acquisition of Company BETA on 1 January 20x1?
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