I had a question regarding the book value of equity and book value of debt.
Book value of equity – Why is equity of 24,600 not added to 15,965 in year 1? Nothing is mentioned in the question about it not being transferred.
Book value of debt – Why is trade and other payables of 7900 not added to 43,342 in year 1? In the question, it is mentioned that it will be transferred to the new company when Ozaku Co is sold.