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  3. on july 1 2016 an acquiring company paid 1275000 for...

Question: on july 1 2016 an acquiring company paid 1275000 for...

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On July 1, 2016, an acquiring company paid $1,275,000 for 100% of the outstanding common stock of an investee company in a transaction that qualifies as a business combination. Immediately preceding the transaction, the investee company had the following condensed balance sheet:

Pre-acquisition amounts reported on investees balance sheet Current assets Property and equipment, net Liabilities Equity 1,

Why is the answer $0? What would make the answer not 0?

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