In the acquisition of Armand Legg Corporation, what should TF Company record as its acquisition price?

The acquisition price that TF Company should record in the acquisition of Armand Legg Corporation is determined by the total consideration paid to acquire the target company. This value typically includes not only the cash exchanged but also any equity instruments or liabilities assumed as part of the transaction.

In this scenario, the option indicating $550 million represents the total value that TF Company has agreed to pay for the acquisition, which may encompass various components such as cash, stock, or any contingent liabilities. Accurately recording the acquisition price at this total ensures compliance with accounting standards that require the fair value of consideration transferred to be recognized at the time of the acquisition.

Other values listed, such as $500 million, $600 million, and $500.5 million, do not reflect the comprehensive total of what TF Company is obligated to pay, which is essential for proper financial reporting and analysis of the deal's implications for both the acquirer and the acquired company.