Compute the investment to be recorded at thedate of acquisition

A)  $1,750.

B)  $1,755.

C)  $1,725.

D)  $1,760.

E)  $1,765.

Answer: B

Learning Objective: 02-04 

Learning Objective: 02-06c

Topic: Contingent consideration

Topic: Journal entry―Investment with no dissolution

Difficulty: 2 Medium

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: $35 × 50 shares = $1,750 + $5 = $1,755