Compute fair value of the net assets acquired at the date of the acquisition.
A) $1,300.
B) $1,340.
C) $1,500.
D) $1,750.
E) $2,480.

Question

Quizplus · Accepted Answer

The fair value of the net assets acquired is the sum of the fair values of the identifiable assets acquired less the fair values of the identifiable liabilities assumed. In this case, the fair value of the net assets acquired is $1,300.

Compute Fair Value of the Net Assets Acquired at the Date