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
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