What value should be used for the consideration transferred

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Question - On February 1, DFS Corp. agreed to purchase 100% of the voting shares of LKJ Corp. for the following consideration:

Cash of $400,000

Equipment with a net book value of $200,000 and estimated fair value of $270,000

50,000 voting shares of DFS, currently trading for $5 per share

DFS incurred the following costs associated with the acquisition:

Legal fees of $25,000

Appraisal costs (equipment appraisal) of $2,000

What value should be used for the consideration transferred to acquire LKJ?

a) $920,000

b) $922,000

c) $945,000

d) $947,000

Reference no: EM132969672

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