On Nov. 2th 2020, ABC Corporation paid OMR800,000 for all the issued and outstanding common stock of XYZ, Inc., in atransaction properly accounted for as an acquisition. The book values and fair values of XYZ's assets and liabilities on Nov. 2thwere as followsFair ValueBook ValueCashOMR 80,000OMR 80,000Receivables (net)90,00090,000Liabilities175,000175,000Inventory150,000157,500Plant and equipment (net)460,000410,000The fair value of net assets is:Select one:O a. OMR(275,000)O b. OMR(525,000)OC OMR275,000O d. OMR525,000O e. OMR(280,000)oull lia sI O

Given information is: Fair values: Cash = OMR 80,000 Receivables (Net) = OMR 90,000 Liabilities =…

Answered: The fair value of net assets is:

Business

Accounting

The fair value of net assets is:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

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