CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below: Based on the information concerning Record Corp. what is the market value of the company's shareholders' equity at the acquisition date?

Question

CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below:  Based on the information concerning Record Corp. what is the market value of the company's shareholders' equity at the acquisition date?

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The Answer of CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below:  Based on the information concerning Record Corp. what is the market value of the company's shareholders' equity at the acquisition date?

CD Inc Acquires 100% of the Outstanding Shares of Record Corp