Doubt

Shares are normally purchased and sold at market value through a stock exchange. Hence market value is taken as purchase consideration.

we calculate Purchase consideration on Market Value in Case of BUsiness Purchase is in the Nature of "Purchase " to have a correct value of Consideration Paid to the shareholders.For eg. Suppose Mr. X have 1000shares face value Rs.10,and Market value of Rs 100.will he ever think of selling it for Rs.10..Ans -no,So The purchase consideration is settled at market value ,

In case of Purchase in the"Nature of Merger" share holders are not paid they r still d member of the transferee co.so in dis case Consideration is paid on face value and they get shares in new co. on facevalue of new co.and end result have no effect

in the question itself they will give whether the purchasing  co. is taking the vendor co.at mv or fv.if the question is silent put suitable assumption/.we have to take market value bcoz it is logic to purchase  a company   according to the current market condition i.e net worth of a co.