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Find the value at which the equipment will be recognised

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Reference no: EM132637770

Question - Narok Ltd acquired equipment as part of a business combination but is unsure what value to record for the equipment. It is estimated that the net present value of future cash flows generated by the equipment is $15,000. The cost of replacing the equipment is estimated to be $18,000. The equipment has been independently appraised as having a market value of $14,000. In the books of the acquired company, the carrying amount of the equipment was $19,000. Find the value at which the equipment will be recognised when recording the business combination?

$14,000

$15,000

$18,000

$19,000

Reference no: EM132637770

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