What is the fair value of co ys liabilities

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Question - On 1/1/2020, Co. X acquired 80% of the voting stock of Co. Y at a cost of $150,000. The book values of Co. Y's assets and liabilities at the date of acquisition were $200,000 and $30,000, respectively. Immediately after acquisition, a positive goodwill of $15,000 appeared in the consolidated balance sheet. If the book and fair values of Co. Y's liabilities were equal, what is the fair value of Co. Y's liabilities?

A - $197,500

B - $172,500

C - $202,500

D - $17,500

Reference no: EM132986138

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