On January 1, 2021, Harrison Corporation Spent $2,600,000 to Acquire

question 78

Multiple Choice

On January 1, 2021, Harrison Corporation spent $2,600,000 to acquire control over Involved, Inc. This price was based on paying $750,000 for 30% of Involved's preferred stock, and $1,850,000 for 80% of its outstanding common stock. As of the date of the acquisition, Involved's stockholders' equity accounts were as follows: What is the total acquisition-date fair value of Involved?

• A)$2,600,000
• B)$4,812,500
• C)$3,062,500
• D)$2,312,500
• E)$3,250,000

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