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6) Paris, Incorporated holds 100 percent of the common stock of Stockholm Company, an investment acquired for $20,000. Immediately following the combination, Paris's net assets

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6) Paris, Incorporated holds 100 percent of the common stock of Stockholm Company, an investment acquired for $20,000. Immediately following the combination, Paris's net assets have a book value of $900,000 and a fair value of $1,050,000. The book and fair value of Stockholm's net assets on the date of combination are $350,000 and $425,000, respectively. Immediately following the combination, a consolidated balance sheet is prepared. 6.1) Based on the information given above, what will be the amount of net assets reported in the consolidated balance sheet? A) $1,420,000 B) $1,325,000 C) $1,250,000 D) $900,000 6.2) Based on the information given above, goodwill will be reported at what amount in a consolidated balance sheet? A) $170,000 B) $150,000 C) $95,000 D) $75,000 3) Based on the information given above, at what amount will Paris's investment in Stockholm stock be reported in a consolidated balance? A) $520,000 B) $170,000 C) $95,000 D) $0

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