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ZAB Industries acquired the net assets of a competitor, YXW, for cash. Amounts recorded by ZAB related to the acquisition included current assets of $80,000, intangible assets of $125,000, goodwill of $75,000, and current liabilities of $150,000.
Question 1: How much did ZAB pay to purchase the net assets of YXW?
Option 1: 130,000
Option 2: 75,000
Option 3: 55,000
Option 4: None of the other answer choices is correct.
Option 5: 70,000
Option 6: 200,000
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