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QUESTION 9 Emily, Inc acquires 100% of the voting stock of Sara Company on January 1, 2017 for $400,000 cash. A contingent pa
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Answer #1
Emily record its investment in Sara on January 1,2017 $ 403,142 =400000+3142
( Cash Payment + Fair value of Contingent liability at 5% interest rate )
Correct answer is option 3.
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