On August 31,20X1,Wood Corp.issued 100,000 shares of its $20 par value common stock for the net assets of Pine,Inc.in a business combination accounted for by the acquisition method.The market value of Wood's common stock on August 31 was $36 per share.Wood paid a fee of $160,000 to the consultant who arranged this acquisition.Costs of registering and issuing the equity securities amounted to $80,000.No goodwill was involved in the purchase.What amount should Wood capitalize as the cost of acquiring Pine's net assets?

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The Answer of On August 31,20X1,Wood Corp.issued 100,000 shares of its $20 par value common stock for the net assets of Pine,Inc.in a business combination accounted for by the acquisition method.The market value of Wood's common stock on August 31 was $36 per share.Wood paid a fee of $160,000 to the consultant who arranged this acquisition.Costs of registering and issuing the equity securities amounted to $80,000.No goodwill was involved in the purchase.What amount should Wood capitalize as the cost of acquiring Pine's net assets?