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se7en.14 on "Acquisition Method problem"

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Hi all,
I have trouble understanding the problem in Becker FAR page F3-38 in 2011/2012 editions.

Column 1: FV of sub- how did they get $500,000? is it excluding marketable sec?
How did they get $50k for B/S adjusted FV?

what's Premium 1,2 and discount?

is this problem linked to another one? because im confused where they got all this....

Thanks


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