Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st January 2023 on the assumption: A. Condition u/s 2(1B) and u/s 72A does not satisfy B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy C. Conditions u/s 2(1B) and u/s 72A are satisfied Other Information of X Ltd.: (i) Business Profits (before adjusting losses and expenses) (ii) Expenses on merger (iii) VRS Compensation (Paid during 2020-21) (iv) Sale consideration of non-depreciable capital assets *60,000 *2,00,000 *4,00,000 *20,00,00 (v) Indexed cost of acquisition of non-depreciable capital assets *12,00,000 (vii) WDV of depreciable assets (ix) Unabsorbed depreciation relating to 2020-21 (x) Long term Capital loss relating to 2021-22 (vi) Sale consideration of depreciable assets (viii) Non-speculation business loss relating to 1994-95 *10,00,000 *7,00,000 3,00,000 1,50,000 2,00,000 Business profits of Y Ltd. (before adjusting losses and expenses) 30,00,000 and long term capital gain of Y Ltd. (before adjusting losses) ₹3,00,000 [7]
Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st January 2023 on the assumption: A. Condition u/s 2(1B) and u/s 72A does not satisfy B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy C. Conditions u/s 2(1B) and u/s 72A are satisfied Other Information of X Ltd.: (i) Business Profits (before adjusting losses and expenses) (ii) Expenses on merger (iii) VRS Compensation (Paid during 2020-21) (iv) Sale consideration of non-depreciable capital assets *60,000 *2,00,000 *4,00,000 *20,00,00 (v) Indexed cost of acquisition of non-depreciable capital assets *12,00,000 (vii) WDV of depreciable assets (ix) Unabsorbed depreciation relating to 2020-21 (x) Long term Capital loss relating to 2021-22 (vi) Sale consideration of depreciable assets (viii) Non-speculation business loss relating to 1994-95 *10,00,000 *7,00,000 3,00,000 1,50,000 2,00,000 Business profits of Y Ltd. (before adjusting losses and expenses) 30,00,000 and long term capital gain of Y Ltd. (before adjusting losses) ₹3,00,000 [7]
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 3C
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