2. Pead Corporation established a new subsidiary and transferred to it assets with a cost of $90,000 and a book value of $75,000. The assets had a fair value of $100,000 at the time of transfer. The transfer will result in: Multiple Choice A reduction of net assets reported by Pead Corporation of $75,000 No change in the reported net assets of Pead Corporation. A reduction of net assets reported by Pead Corporation of $90,000. An increase in the net assets reported by Pead Corporation of $25,000.

Pead Corporation established a new subsidiary and transferted to it assets with a cost of $90,000 and a book value of $75,000. he assets had a fair value of $100,000 at the time of transfer. The transfer will result in: Multiple Choice A reduction of net ossets reported by Pead Corporation of $75,000. No change in the reported net assets of Pead Corporotion. A reduction of net assets reponted by Pead Corporation of $90,000 An increase in the net assets reponed by Pead Corporation of $25,000