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Bell Co. acquires 75% of the outstanding stock of Maxon Corporation in a business combination. The book values of Maxon's net assets are equal to

Bell Co. acquires 75% of the outstanding stock of Maxon Corporation in a business combination. The book values of Maxon's net assets are equal to the fair values except for a warehouse which has a net book value and fair value of $420,000 and $700,000, respectively. At what value would the warehouse be reported on the consolidated balance sheet?

$315,000

$420,000

$525,000

$700,000

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