Tech plc invested £500,000 in building a customer database in 20X1. On 1 July of 20X2, Tech plc was acquired by BC plc and the fair value of the customer database at that time was £950,000.
Which statement is correct?

Question

Tech plc invested £500,000 in building a customer database in 20X1. On 1 July of 20X2, Tech plc was acquired by BC plc and the fair value of the customer database at that time was £950,000.

Which statement is correct?

Accepted Answer

BC plc recognised £950,000 of intangible assets in respect to the customer database at the acquisition date.

Answer

Tech plc recognised £500,000 of intangible assets in respect to the customer database in 20X1.

Answer

BC plc recognised £500,000 of intangible assets in respect to the customer database at the acquisition date.

Answer

BC plc recognised £450,000 of goodwill at the acquisition date.

Crowdly

Tech plc invested £500,000 in building a customer database in 20X1. On 1 July of...

Want instant access to all verified answers on moodle4.city.ac.uk?