Solution-What value should be used for the consideration

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: EM133024249

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What value should be used for the consideration transferred

Reference no: EM133024249

Reference no: EM133024249

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