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# Please provide answer to the question below and why- Question 3- If.docx

Solution
Fair value of net assets of sub = 650000 - 50000 = 600000
For making it a bargain purchase deal price pais must be lesser than 600,000, accordingly correct option is:

.

Solution
Fair value of net assets of sub = 650000 - 50000 = 600000
For making it a bargain purchase deal price pais must be lesser than 600,000, accordingly correct option is:

.

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### Please provide answer to the question below and why- Question 3- If.docx

1. 1. Please provide answer to the question below and why? Question 3: If the 100% stock acquisition of Sub Company by Parent Company was a bargain purchase, what was the purchase price of Sub Company? a) \$650,000 b) \$600,000 c) \$550,000 d) None of the above Solution Fair value of net assets of sub = 650000 - 50000 = 600000 For making it a bargain purchase deal price pais must be lesser than 600,000, accordingly correct option is: c) \$550,000