Riddick purchased all of the outstanding stock of Vaako Inc. for $12,000,000Vaako's book value was 8,500,000 The book values were the same as the fair value with the exception of the following: Patent was undervalued by 2,000,000 and Notes Payable was undervalued by $1,500,000 . What is the fair value of Vaako's net assets?

Answer rating: 100% (QA)

To calculate the fair value of Vaako Incs net assets we need to adjust the book values for the Patent and Notes Payable to reflect their true fair values The fair value of Vaako Incs net assets can be calculated as follows 1 Start with the book value ... View the full answer