Business, 10.12.2021 20:40 sreeranjanig

On 12/31/Year 1 Passey Co. acquired a 100% interest inSolomon Co. by exchanging 10000 shares of its common stock for100000 shares of Solomons common stock. The fair market value ofPasseys common stock on December 31 Year 1 was $9 per share andthe fair value of Solomons was $3.50 per share. Additional information as of December 31 Year 1 is as follows: Solomon Co.
Book Values Fair Values
Current assets $115000 $115000
Plant assets 200000 255000
Liabilities 10000 10000
Passey Co. Plant assets$1700000 $1800000
Passeys consolidated financial statements as of December 31 Year1 would report plant assets at:.
i. $1700000
ii. $1800000
iii. $1955000
iv. $2055000

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On 12/31/Year 1 Passey Co. acquired a 100% interest inSolomon Co. by exchanging 10000 shares of its...

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