Question: Cloud Co obtained a 60% interest in Mist Co's $ 100,000 shares on January 1, 2019. Cloud Co paid $ 250,000 in cash immediately with

Cloud Co obtained a 60% interest in Mist Co's $ 100,000 shares on January 1, 2019. Cloud Co paid $ 250,000 in cash immediately with an additional $ 400,000 payable on January 1, 2020 and a share in Cloud Co for every two shares acquired. Cloud Co has a cost of equity of 8% and the market value of its shares on January 1, 2019 was $ 2.30

What was the total consideration paid for Cloud Co's stake in Mist co?

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