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Answer :
Final answer:
The step-up allocated to the assets of business line J is $30.
Explanation:
The step-up allocated to the assets of business line J is determined by the excess of the purchase price over the basis of the assets acquired. In this case, GHI Corporation buys the assets from KLM Corporation for $100 cash.
The basis of the inventory is $30 and the basis of the machinery is $40. Therefore, the step-up allocated to the assets of business line J is $100 - ($30 + $40) = $30.
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