Required information

SB Plummet Corporation reported the book value...

Plummet Corporation reported the book value of its net assets at $$400,000$ when Zenith Corporation acquired $100$ percent ownership. The fair value of Plummet's net assets was determined to be $$510,000$ on that date.

TB MC Qu$.01-24$ Based on the preceding information, what...

Based on the preceding information, what amount will be recorded by Zenith as its investment in Plummet, if it paid $$500,000$ for the acquisition?

Multiple Choice

$$400,000$

$$500,000$

$$610,000$