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On 30 June 20X7, Edison Ltd acquired all the assets and liabilities of Oliver Ltd,...

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Accounting

On 30 June 20X7, Edison Ltd acquired all the assets and liabilities of Oliver Ltd, with Oliver Ltd going into liquidation. In exchange for these assets and liabilities, Edison Ltd issued 60,000 shares, and the fair value of each share at the acquisition date is $4. Costs of issuing these shares amounted to $2,000. Legal costs associated with the acquisition of Oliver Ltd amounted to $1,500.
The assets and liabilities of Oliver Ltd at 30 June 20X7 were as follows:
\table[[,Carrying amount,Fair value],[Cash,12000,12000],[\table[[Accounts receivable (Cost: $45000,],[Estimated uncollectable debts: $5000
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