Answer: $800,000
Explanation: Acquisition cost is usually related to the amount required to gain ownership of a property or asset. It is usually regarded as the amount paid to a seller in other for such individual to sanction the sale if an asset. In the scenario above, the amount received by East Co. is $800,000, hence prompting East Co. to surrender 60% of it's outstanding common stock. Relocation cost will not be calculated as part of the acquisition cost, although it will be calculated as part of the expenses incurred.
