On December 31, 20X1, Par Inc reported total assets of $608,371, while Sub Corp reported...
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Accounting
On December 31, 20X1, Par Inc reported total assets of $608,371, while Sub Corp reported total assets of $121,661. The fair values of Sub's assets and liabilities on the same date were $151,673 and $34,879 respectively. On the morning of January 1, 20X2, Par agreed to acquire 79.53% of Sub for a total value of $182,509 by issuing its own common shares as consideration. On the consolidated balance sheet immediately after the acquisition, what should be the total assets reported by the combined entity under the fair-value-enterprise (FVE) method?
a.
$850,916
b.
$872,734
c.
$916,371
d.
$938,190
e.
$894,553
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