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On August 31, 20X1, Wood Corp. issued 200,000 shares of its $20 par value common stock for the net assets of Pine, Inc. in a
On August 31, 20X1, Wood Corp. issued 200,000 shares of its $20 par value common stock for the net assets of Pine, Inc. in a business combination accounted for by the acquisition method. The market value of Wood's common stock on August 31 was $45 per share. Wood paid a fee of $200,000 to the consultant who arranged this acquisition. Costs of registering and issuing the equity securities amounted to $150,000. No goodwill was involved in the purchase. What amount should Wood capitalize as the cost of acquiring Pine's net assets?
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