Paro Company Purchased 80% of the Voting Common Stock of Sabon

question 3

Multiple Choice

Paro Company purchased 80% of the voting common stock of Sabon Company for $900,000. There are no liabilities. The following book and fair values are available for Sabon: The machinery will appear on the consolidated balance sheet at ____.

• A)$600,000
• B)$540,000
• C)$480,000
• D)$300,000

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