Mercury Corporation Acquired 100 Percent of the Stock of Jupiter

question 28

Multiple Choice

Mercury Corporation acquired 100 percent of the stock of Jupiter Company when the book value of Jupiter's net assets was $250,000.The fair value of Jupiter's net assets was $280,000 on the acquisition date.
-Based on the preceding information,what amount will be recorded by Mercury as its investment in Jupiter if it paid $275,000 for the acquisition?

• A)$250,000
• B)$275,000
• C)$280,000
• D)$300,000