Hi All

Please help.

Scenario:

Adam has 100% shares in a XYZ cc.
He sells 32% to Eave for R2 000 000.

The cc has a R100 share capital.
Retained earnings R nil
Members Loan R 1 299 900
Revaluation Reserve R 5 500 000
Bond R 1 700 000
Fixed Property R 6 000 000
Intangible Assets R 2 500 000

XYZ Balance Sheet

ASSETS
NON CURRENT ASSETS 8 500 000
Tangible assets 6 000 000
Intangible assets - Goodwill 2 500 000

TOTAL ASSETS 8 500 000

MEMBERS FUNDS AND LIABILITIES
MEMBERS' FUNDS 5 500 100
Members' contributions 100
Retained earnings -
Revaluation reserve 5 500 000

MEMBERS' LOAN 1 299 900

NON CURRENT LIABILITIES 1 700 000
TOTAL LIABILITIES AND CAPITAL 8 500 000


What will the Base cost of the 32% shares be?

Thanks