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The fair value of net assets is:

The fair value of net assets is:

FINANCIAL ACCOUNTING
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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On Nov. 2th 2020, ABC Corporation paid OMR800,000 for all the issued and outstanding common stock of XYZ, Inc., in a transaction properly accounted for as an acquisition. The book values and fair values of XYZ's assets and liabilities on Nov. 2th were as follows Fair Value Book Value Cash OMR 80,000 OMR 80,000 Receivables (net) 90,000 90,000 Liabilities 175,000 175,000 Inventory 150,000 157,500 Plant and equipment (net) 460,000 410,000 The fair value of net assets is: Select one: O a. OMR(275,000) O b. OMR(525,000) OC OMR275,000 O d. OMR525,000 O e. OMR(280,000) oull lia sI O
Transcribed Image Text:On Nov. 2th 2020, ABC Corporation paid OMR800,000 for all the issued and outstanding common stock of XYZ, Inc., in a transaction properly accounted for as an acquisition. The book values and fair values of XYZ's assets and liabilities on Nov. 2th were as follows Fair Value Book Value Cash OMR 80,000 OMR 80,000 Receivables (net) 90,000 90,000 Liabilities 175,000 175,000 Inventory 150,000 157,500 Plant and equipment (net) 460,000 410,000 The fair value of net assets is: Select one: O a. OMR(275,000) O b. OMR(525,000) OC OMR275,000 O d. OMR525,000 O e. OMR(280,000) oull lia sI O
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