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Book Company issued 5,000 shares of its OMR 10 Par value common stock for the net assets of Note Company in a business combination under

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Book Company issued 5,000 shares of its OMR 10 Par value common stock for the net assets of Note Company in a business combination under which Note Company will be merged into Book Company. On the date of the combination, Book Company common stock had a fair value of OMR 40 per share. Balance sheets for Book Company and Sims Company immediately prior to the combination were: Items Book Note OMR OMR Current assets 400,000 70,000 Plant and equipment 500,000 200,000 Total 900,000 270,000 Liabilities Common stock Other contributed capital Retained earnings Total 300,000 500,000 50,000 50.000 900,000 100,000 100.000 20,000 50,000 270,000 Required: if the business combination is treated as a purchase and Note Company's net assets have a fair value of OMR 300,000. Book Company's balance sheet immediately after the combination will include goodwill of Select one: O a OMR 200.000 b. OMR 300,000 c. OMR 100,000 d. OMR 250.000

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