Tekki, Inc. purchased all of the stock of Sandan, Inc. on January 1, 2024. Immediately after the acquisition, the two companies had the following trial balances:
| | Tekki
dr (cr)
| Sandan
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? |
