ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: What is the amount recorded by ACME for the Building?
A)$110,000
B)$20,000
C)$80,000
D)$100,000

Question

ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet:  What is the amount recorded by ACME for the Building?
A)$110,000 
B)$20,000 
C)$80,000 
D)$100,000

Quizplus · Accepted Answer

Identifiable assets and liabilities of the acquiree are recorded at fair value.

ACME Co Paid $110,000 for the Net Assets of Comb Corp