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Accounting X Co concluded that the fair value of H Co was $40,000 and paid that amount to acquire all of its net assets. H

Accounting X Co concluded that the fair value of H Co was $40,000 and paid that amount to acquire all of its net assets. H co reported assets with a book value of $30,000 and fair value of $49,000 and liabilities with a book value and fair value of $11,500 on the date of combination. X also paid $1,500 for legal fees related to the acquisition. What amount will be recorded as Investment in H? Select one: a. 38,500 b. 41,500 c. 40,000 d. 39,500

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