Which of the following should not be considered as a part of purchase consideration?

Payment to equity shareholders

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Payment to preference shareholders

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Payment to debentureholders

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Cash payment to shareholders

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Solution

The correct option is B Payment to debentureholders
The payments to the debenture holders are not included in the purchase considerations.
The purchase consideration does not include the amount to be paid to the debentureholders by the transferee company.

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Which of the following should not be considered as a part of purchase consideration?

The correct option is B Payment to debentureholdersThe payments to the debenture holders are not included in the purchase considerations.The purchase consideration does not include the amount to be paid to the debentureholders by the transferee company.

The correct option is B Payment to debentureholders
The payments to the debenture holders are not included in the purchase considerations.
The purchase consideration does not include the amount to be paid to the debentureholders by the transferee company.