On August 31, 2018, Jeffrey Corp. issued 100,000 shares of its $20 par value common...
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On August 31, 2018, Jeffrey Corp. issued 100,000 shares of its $20 par value common stock for the net assets of Matty Inc. in a business combination accounted for as a purchase. The market value of Jeffreys common stock on 8.31.18 was $56 per share. Jeffrey also paid a fee of $420,000 to Amy CPA who arranged this transaction. Costs of registering and issuing the equity securities amounted to $220,000. No goodwill was involved in the purchase. What amount should Jeffrey capitalize as the cost of acquiring Mattys net assets?
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