diff --git a/CRM/Member/Form/Membership.php b/CRM/Member/Form/Membership.php
index 3169844fdc0b..aecab9df5b07 100644
--- a/CRM/Member/Form/Membership.php
+++ b/CRM/Member/Form/Membership.php
@@ -1162,6 +1162,12 @@ public function submit() {
 
     $lineItem = [$this->_priceSetId => []];
 
+    // BEGIN Fix for dev/core/issues/860
+    // Prepare fee block and call buildAmount hook - based on CRM_Price_BAO_PriceSet::buildPriceSet().
+    CRM_Price_BAO_PriceSet::applyACLFinancialTypeStatusToFeeBlock($this->_priceSet['fields']);
+    CRM_Utils_Hook::buildAmount('membership', $this, $this->_priceSet['fields']);
+    // END Fix for dev/core/issues/860
+
     CRM_Price_BAO_PriceSet::processAmount($this->_priceSet['fields'],
       $formValues, $lineItem[$this->_priceSetId], NULL, $this->_priceSetId);
 
diff --git a/CRM/Price/BAO/PriceSet.php b/CRM/Price/BAO/PriceSet.php
index c5b7caaad661..68ae0a0d4eaa 100644
--- a/CRM/Price/BAO/PriceSet.php
+++ b/CRM/Price/BAO/PriceSet.php
@@ -1008,19 +1008,9 @@ public static function buildPriceSet(&$form) {
     else {
       $feeBlock = &$form->_priceSet['fields'];
     }
-    if (CRM_Financial_BAO_FinancialType::isACLFinancialTypeStatus()) {
-      foreach ($feeBlock as $key => $value) {
-        foreach ($value['options'] as $k => $options) {
-          if (!CRM_Core_Permission::check('add contributions of type ' . CRM_Contribute_PseudoConstant::financialType($options['financial_type_id']))) {
-            unset($feeBlock[$key]['options'][$k]);
-          }
-        }
-        if (empty($feeBlock[$key]['options'])) {
-          unset($feeBlock[$key]);
-        }
-      }
-    }
-    // call the hook.
+
+    self::applyACLFinancialTypeStatusToFeeBlock($feeBlock);
+    // Call the buildAmount hook.
     CRM_Utils_Hook::buildAmount($component, $form, $feeBlock);
 
     // CRM-14492 Admin price fields should show up on event registration if user has 'administer CiviCRM' permissions
@@ -1074,6 +1064,29 @@ public static function buildPriceSet(&$form) {
     }
   }
 
+  /**
+   * Apply ACLs on Financial Type to the price options in a fee block.
+   *
+   * @param array $feeBlock
+   *   Fee block: array of price fields.
+   *
+   * @return void
+   */
+  public static function applyACLFinancialTypeStatusToFeeBlock(&$feeBlock) {
+    if (CRM_Financial_BAO_FinancialType::isACLFinancialTypeStatus()) {
+      foreach ($feeBlock as $key => $value) {
+        foreach ($value['options'] as $k => $options) {
+          if (!CRM_Core_Permission::check('add contributions of type ' . CRM_Contribute_PseudoConstant::financialType($options['financial_type_id']))) {
+            unset($feeBlock[$key]['options'][$k]);
+          }
+        }
+        if (empty($feeBlock[$key]['options'])) {
+          unset($feeBlock[$key]);
+        }
+      }
+    }
+  }
+
   /**
    * Check the current Membership having end date null.
    *
diff --git a/tests/phpunit/CRM/Member/Form/MembershipTest.php b/tests/phpunit/CRM/Member/Form/MembershipTest.php
index c42b52a06f5d..d70cee241327 100644
--- a/tests/phpunit/CRM/Member/Form/MembershipTest.php
+++ b/tests/phpunit/CRM/Member/Form/MembershipTest.php
@@ -1085,6 +1085,57 @@ public function testTwoInheritedMembershipsViaPriceSetInBackend() {
     $this->assertEquals(1, $contributionResultAfterRelationshipDelete['count'], "Contribution has been wrongly deleted.");
   }
 
+  /**
+   * dev/core/issues/860:
+   * Test creating two memberships via price set in the back end with a discount,
+   * checking that the line items have correct amounts.
+   */
+  public function testTwoMembershipsViaPriceSetInBackendWithDiscount() {
+    // Register buildAmount hook to apply discount.
+    $this->hookClass->setHook('civicrm_buildAmount', [$this, 'buildAmountMembershipDiscount']);
+
+    // Create two memberships for individual $this->_individualId, via a price set in the back end.
+    $this->createTwoMembershipsViaPriceSetInBackEnd($this->_individualId);
+    $contribution = $this->callAPISuccessGetSingle('Contribution', [
+      'contact_id' => $this->_individualId,
+    ]);
+    // Note: we can't check for the contribution total being discounted, because the total is set
+    // when the contribution is created via $form->testSubmit(), but buildAmount isn't called
+    // until testSubmit() runs. Fixing that might involve making testSubmit() more sophisticated,
+    // or just hacking total_amount for this case.
+
+    $lineItemResult = $this->callAPISuccess('LineItem', 'get', [
+      'contribution_id' => $contribution['id'],
+    ]);
+    $this->assertEquals(2, $lineItemResult['count']);
+    $discountedItems = 0;
+    foreach ($lineItemResult['values'] as $lineItem) {
+      if (CRM_Utils_String::startsWith($lineItem['label'], 'Long Haired Goat')) {
+        $this->assertEquals(15.0, $lineItem['line_total']);
+        $this->assertEquals('Long Haired Goat - one leg free!', $lineItem['label']);
+        $discountedItems++;
+      }
+    }
+    $this->assertEquals(1, $discountedItems);
+  }
+
+  /**
+   * Implements hook_civicrm_buildAmount() for testTwoMembershipsViaPriceSetInBackendWithDiscount().
+   */
+  public function buildAmountMembershipDiscount($pageType, &$form, &$amount) {
+    foreach ($amount as $id => $priceField) {
+      if (is_array($priceField['options'])) {
+        foreach ($priceField['options'] as $optionId => $option) {
+          if ($option['membership_type_id'] == 15) {
+            // Long Haired Goat membership discount.
+            $amount[$id]['options'][$optionId]['amount'] = $option['amount'] * 0.75;
+            $amount[$id]['options'][$optionId]['label'] = $option['label'] . ' - one leg free!';
+          }
+        }
+      }
+    }
+  }
+
   /**
    * Get a membership form object.
    *