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Assume an investor purchases the business of an investee. The falr value of the investee company is equal to its reported book value and the

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Assume an investor purchases the business of an investee. The falr value of the investee company is equal to its reported book value and the fair values of the individual net assets are equal to their reported book values. The investee company reports the following balance sheet on the acquisition date: A. Provide the journal entry if the investor pays cash and purchases the assets and assumes the liabilities of the investee company. Company is dissolved. B. Provide the journal entry if the investor pays cash and purchases all of the stock of the investee's shareholders. Company remains

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