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:

1. Prepare the journal entry to record the investment on September 30, 2017 (4 marks)