Question: on july 1 2016 an acquiring company paid 1275000 for...
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:
Why is the answer $0? What would make the answer not 0?