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Business, 19.05.2020 20:17 renee9913

Poppy Corporation acquires Stevens Company, paying the owners of Stevens 1,000,000 new shares with a par value of $0.50 per share and a fair value of $50 per share at the date of acquisition. Poppy also incurs cash registration fees of $100,000 and consulting fees of $700,000. Included in the agreement is a contingency guaranteeing Stevens shareholders to pay $400,000 if sales increase 5% in the current year. Poppy' contingency is almost certain and it is valued at $400,000. What is Poppy’s reported acquisition cost? Group of answer choices $50,000,000 $50,400,000 $51,200,000 $50,700,000

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Poppy Corporation acquires Stevens Company, paying the owners of Stevens 1,000,000 new shares with a...

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