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Question 4: (10 points) A1, B1, C1, C3 On September 30, 2017, AL Manama Corporation paid $550,000 to acquire 72% of the outstanding common stock
Question 4: (10 points) A1, B1, C1, C3
On September 30, 2017, AL Manama Corporation paid $550,000 to acquire 72% of the outstanding common stock of Ahlia Company which became a subsidiary. Differences between current fair values and carrying amounts of identifiable net assets of Ahlia Company on September 30, 2017, were limited to the following:
| Current Fair Values | Carrying Amounts |
Inventories | $ 5,000 | $ 20,000 |
building (net) | 260,000 | 140,000 |
Instructions:
- Prepare the journal entry to record the investment on September 30, 2017 (4 marks)
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