Question
Scissor Corporation's balance sheet at January 1, 2020 reflected the following balances : Cash &Receivable $ 80,000 Accounts $40,000 Payable Inventory 60,000120,000 Income taxes Payable
Scissor Corporation's balance sheet at January 1, 2020 reflected the following balances : Cash &Receivable $ 80,000 Accounts $40,000 Payable Inventory 60,000120,000 Income taxes Payable Land 70,000 Bonds Payable 200,000 480,000 Common Stock Building & Equipment (net ) 250,000 200,000Retained Earnings Total Assets $750,000 Total Liabilities & ISHE $750,000 Paper Corporation entered into an active acquisition program and acquired 80% of Scissor's common stock on January 1, 2020 , for \$470,000, . The fair value of noncontrolling interest at that date was determined for $117.500 . A careful review of the fair value of Scissor's assets and liabilities indicated the following : Account Book Value Fair Value Inventory $120.000 $150.000 Land 70.000 60.000 Building & Equipment (net ) 480.000 550.000 What is the amount of the investment in Scissor Corporation to be included in the consolidated sheet immediately following the acquisition date? Select one : O a . $ 7, 500 O $470.000 Oc. $ 137,000 O d. $
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