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Company R purchased 100% of the outstanding common stock of Company S for $500,000. The FMV of the net assets of Company S was $400,000,

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Company R purchased 100% of the outstanding common stock of Company S for $500,000. The FMV of the net assets of Company S was $400,000, and the BV of the net assets of Company S was $300,000. The amount of gain recognized by Company S on this transaction would be: A) $0 B) $500,000 C) $200,000 D) $100,000

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