Answered: he fair value of common stock 15 per…

Business

Accounting

he fair value of common stock 15 per share. Calculate the investment in GMC Company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On April 1 2018, Honda Co., purchased 75% of outstanding common stock of GMC Co., @ OMR 250,000 cash. The Co., common stock OMR 40,000 @12 per share. The fair value of common stock 15 per share. Calculate the investment in GMC Company.

Select one:

a. OMR 3,750,000

b. OMR 250,000

c. OMR 480,000

d. OMR 600,000

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