1. Pat Corporation paid $100,000 cash for the net assets of Sag Company, which consisted of the following: Book Value Fair Value Current assets $ 40,000 $ 56,000 Plant and equipment 160,000 220,000 Liabilities assumed (40,000) (36,000) $160,000 $240,000 Assume Sag Company is dissolved. The plant and equipment acquired in this business combination should be recorded at: * (1 Point) $180,000 $220,000 $200,000 $183,332