Accounting for a controlling financial interest An acquiring company issues 5,000 shares of $2 par...
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Accounting
Accounting for a controlling financial interest An acquiring company issues 5,000 shares of $2 par value common stock to acquire 100% of the voting common stock of an investee company in a transaction that qualifies as a business combination. The market value of the acquiring company's common stock is $10 per share. Direct legal and consulting fees incurred pursuant to the combination are $2,000. Direct registration and issuance costs for the acquiring company's common stock are $500. The transaction did not result in goodwill recognition or bargain gain recognition. What is the total amount of net assets recognized as a result of this business combination? $10,000 $50,000 $49,500 $47,500
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