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In consolidation of financial information (under the acquisition method), assume that after negotiations with the...

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Accounting

  1. In consolidation of financial information (under the acquisition method), assume that after negotiations with the owners of Big Tops, Tempco agrees to pay cash of $700,00 and issue 35,000 unissued shares of its $20 par value common stock (currently selling for $200 per share) for all of Big Tops assets and liabilities. Following the acquisition, Big Top dissolves itself as a legal entity, How would the consideration transferred from Tempco to Big Top is computed, assume that the collective fair values of Big Tops assets and liabilities are equal.

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