Reading 19eoc #27

Could someone pls tell me how they figure outa that the bv of the net assets is 580. I understand purchase price of 320 therefore implied fair value of 640 since 50% stake. But where is the 580 bv coming from. Pls help

Can someone pls tell me how they solved this problem?

The book value of net assets is 580…i.e. equity on the balance sheet is 580.

Shouldn’t I take into consideration the net assets on the bs not the equity

Net assets = total assets - total liabilties = equity.

I can’t believe I got thrown off one word “net” thank you very much.