Question
I already know what the answer to this question is, but I need someone to break it down for me. PLEASE SHOW WORK AND HOW
I already know what the answer to this question is, but I need someone to break it down for me. PLEASE SHOW WORK AND HOW YOU GOT TO THE ANSWER.
Action Corp. issued nonvoting preferred stock with a fair market value of $4,000,000 in exchange for all the outstanding common stock of Master Corp. On the date of exchange, Master had tangible net assets with a book value of $2,000,000 and a fair value of $2,500,000. In addition, Action issued preferred stock valued at $400,000 to an individual as a finder's fee in arranging this transaction. What should Action record as an increase in net assets?
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