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Accounting

During the current year, Compton Crate Corporation purchased all of the outstanding common stock of Little Lacy Ltd. (LLL), paying $60 million in cash. Compton recorded the assets acquired as follows:

The book value of LLL's assets and owners' equity before the acquisition were $50 million and $30 million, respectively.

Required: Compute the fair value of LLL's liabilities that Compton incurred in the acquisition.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9448949

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