When Jolt Co

question 6

Multiple Choice

When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000.
What is the total amount of excess land allocation at the acquisition date?

• A) $0.
• B) $30,000.
• C) $22,500.
• D) $25,000.
• E) $17,500.

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Definitions:

Intrastate

Activities or commerce that occur exclusively within the boundaries of a single state and are not subject to federal jurisdiction.

Alien

A foreign national who is not a citizen of the country in which they are living.

Foreign

Relating to or originating from a country other than one's own, often associated with international laws, transactions, or entities.

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Relating to or involving more than one state, usually in reference to commerce or transportation that crosses state lines.