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Skylar manufacturing acquires a target company whose holdings include vacant land planned for use as a site for a manufacturing facility, but could be developed
Skylar manufacturing acquires a target company whose holdings include "vacant" land "planned for" use as a site for a manufacturing facility, but could be developed as a site for residential use. The fair value of the land if used for a manufacturing operation, is determined to be $6 million. The fair value of the land as a vacant site for residential use, is determined to be $20 million. What is the fair value of the land for financial reporting purposes?
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