alleryStart learning →Without an active market, an intangible's cost in a purchase-type amalgamation cannot create or increase:
AA deferred tax asset
BA general reserve
CA revaluation reserve
DA capital reserve
Answer & Solution
Correct answer: D. A capital reserve
The cost is capped so that attributing value to the intangible does not produce or enlarge a capital reserve at the date of amalgamation.
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Related questions
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