Tekki, Inc. purchased all of the stock of Sandan, Inc. on January 1, 2021. Immediately after the acquisition, the two companies had the following trial balances:

 
Tekki
Sandan
 
dr (cr)
dr (cr)
   
Current Assets
150 
75 
Fixed Assets (net)
800 
310 
Investment in Subsidiary
450 
 
Liabilities
(300)
(150)
Common Stock
(600)
(60)
Retained Earnings
 (500)
(175)
 
  0 
  0 

At the time of the purchase, the book values of Sandan’s current assets and liabilities equaled the fair market values of these items. The subsidiary’s fixed assets had a fair market value (FMV) of $400.

What did Tekki pay to acquire the stock of Sandan?

Answer:



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