In a transaction accounted for using the acquisition method where consideration transferred exceeds book value of the acquired company, which statement is true for the acquiring company with regard to its investment?
a) Net assets of the acquired company are revalued to their fair values and any excess of consideration transferred over fair value of net assets acquired is allocated to goodwill
b) Net assets of the acquired company are maintained at book value and any excess of consideration transferred over book value of net assets acquired is allocated to goodwill.
c) Acquired assets are revalued to their fair values. Acquired liabilities are maintained at book value. Excess is allocated to goodwill.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “In a transaction accounted for using the acquisition method where consideration transferred exceeds book value of the acquired company, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What is the most important reason for doing vehicle inspection
Answers (1)
Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2017. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000.
Answers (1)
Which of the following statements is true? Producer surplus measures the total benefit received by producers from participating in a market. When a market is in equilibrium consumer surplus equals producer surplus.
Answers (1)
Paul Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries and wages earned by employees $ 212,000 Employee income taxes withheld 42,400 Employee government insurance premiums
Answers (1)
Idk what too putm; mpompm; p
Answers (1)
New Questions in Business
A "universal product code" (upc) : 1. was required by the federal fair packaging and labeling act. 2. slows down the retail checkout process. 3. all of the above are true. 4. involves placing the price per ounce on or near the product. 5.
Answers (1)
On September 15, 2021, Oliver's Mortuary received a $3,600, nine-month note bearing interest at an annual rate of 14% from the estate of Jay Hendrix for services rendered. Oliver's has a December 31 year-end.
Answers (1)
The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and therefore quicker response to a potential stockout. a) trueb) false
Answers (1)
Requiring segregation of duties in a business eliminates the need for the work of one employee to serve as a check on the work of other employees.
Answers (1)
At December 31, 2018, the following information was available for Deen Company: ending inventory $22,600; beginning inventory $21,400; cost of goods sold $171,000; and sales revenue $430,000.
Answers (1)