I think the answer is B because that doesn't seem very desirable
Answer:
The correct answer is $300,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Original cost = $250,000
Fair value = $300,000
Retail value = $520,000
As Share based transaction of the organization record or issued always at fair value for which the goods or services are exchanged.
Here, Fair value is given.
So, the transaction will be recorded at fair value = $300,000
It should disclose all the terms and conditions, otherwise the purchase agreement wouldn't be binding.
The answer is A. The subsidiary borrows money from Hong Kong banks