Kimiko Co. purchased 100% of the outstanding common stock of Miyashiro, Inc. for $500,000 cash, and Kimiko Co. incurred $50,000 in indirect acquisition costs. The FMV of the net assets of Miyashiro, Inc. was $300,000, and the BV of the net assets of Miyashiro, Inc. was $400,000. When Kimiko Co. performs an initial consolidation, the remaining consolidated balance in "Investment in Miyashiro" post-consolidation will be:

Question 7 options:

a)

$200,000

b)

$0