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Company XYZ purchased 100% of the outstanding common stock of Company ABC for $800,000 cash. The FMV of the net assets of Company ABC was
Company XYZ purchased 100% of the outstanding common stock of Company ABC for $800,000 cash. The FMV of the net assets of Company ABC was $300,000, and the BV of the net assets of Company ABC was $200,000. When Company XYZ performs an initial consolidation, the remaining consolidated balance in "Investment in Company B" post-consolidation will be:
Question 8 options:
a)
$300,000
b)
$800,000
c)
$0
d)
$500,000
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