On august 31, 2010, wood corp. issued 100,000 shares of its $20 par value common stock for the net assets of pine, inc., in a business combination accounted for using the acquisition method. the market value of wood's common stock on august 31 was $36 per share. wood paid a fee of $160,000 to the consultant who arranged this acquisition. costs of registering and issuing the equity securities amounted to $80,000. no goodwill was involved in the purchase. what amount should wood capitalize as the cost of acquiring pine's net assets?

$3,600,000 is the amount Wood should capitalize as the cost of acquiring Pine's net assets.

Given:

Wood Corp. issued 100,000 shares of its $20 par value

The market value of Wood's common stock on August 31 was $36 per share.

Wood paid a fee of $160,000 to the consultant who arranged this acquisition.

Costs of registering and issuing the equity securities amounted to $80,000.

∴ Cost of acquiring =  100,000 shares issued × $36 per share

= $3,60,000

answer; /// i believe its (bas design);

answer the amount a seller is paid minus the cost of production;