Question
On December 31, 20X1, Par Inc reported total assets of $680,323, while Sub Corp reported total assets of $136,041. The fair values of Sub's assets
On December 31, 20X1, Par Inc reported total assets of $680,323, while Sub Corp reported total assets of $136,041. The fair values of Sub's assets and liabilities on the same date were $169,601 and $39,003 respectively. On the morning of January 1, 20X2, Par agreed to acquire 100% of Sub for a total value of $226,748 by issuing its own common shares as consideration. On the consolidated balance sheet immediately after the acquisition, what should be the total assets reported by the combined entity? a. $946,074 b. $969,726 c. $1,017,030 d. $993,378 e. $1,040,681
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