When the purchaser in a business combination pays less than the fair value of the identifiable...

When the purchaser in a business combination pays less than the fair value of the identifiable net assets, ________ is recorded by the purchaser.

A. Goodwill.

B. a liability.

C. gain.

D. R&D expense.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

What is the fair value of the net identifiable assets for spirited company

Current practice requires that the assets acquired in a business combination be measured at fair value...

Current practice requires that the assets acquired in a business combination be measured at fair value as defined by SFAS No. 157 (see FASB ASC 820-10). Side 1: Argue that the acquiring company should measure the acquired company's plant assets that it plans to use in int operations in accordance with the requirements of SFAS No. 141 before its revisions. Side 2: Argue that the acquiring company should measure the acquired company's plant assets that it plans to use in...

how to recognize and measure identifiable assets acquired and liabilities assumed in business combination ? Explain...

how to recognize and measure identifiable assets acquired and liabilities assumed in business combination ? Explain in around 1500 words

Under the acquisition method, when the fair value of net assets is higher than the consideration...

Under the acquisition method, when the fair value of net assets is higher than the consideration transferred, then the following entry is recorded? A. Credit to goodwill B. Debit to goodwill C. Credit to gain on bargain purchase D. Debit to gain on bargain purchase E. Long term assets of acquired company are reduced

What does it mean when a company's book value per share is less than the market...

What does it mean when a company's book value per share is less than the market value per share of a common stock? Should this be a key concern for an investor?

Calculate the fair value for a share that pays an annual dividend of $2.50 and has...

Calculate the fair value for a share that pays an annual dividend of $2.50 and has been growing steadily at 2% per year for the past 20 years and is expected to continue to do so. The required yield for this stock is 12%. a. $21.25 b. $25.50 c. $25.00 d. $20.83

1a) Explain why we reject the null hypothesis when the p-value is less than the level...

1a) Explain why we reject the null hypothesis when the p-value is less than the level of significance? b) Explain to someone unfamiliar with statistics how to tell whether a statistical test is left, right, or two tailed. Explain what to look for in the wording of a hypothesis test and with the alternate hypothesis. c) Why can we never truly accept the null hypothesis?

Explain why marginal revenue is always less than average revenue(price) when demand is less than perfectly...

Explain why marginal revenue is always less than average revenue(price) when demand is less than perfectly elastic.

If an asset is sold (market value) for more or less than its book value that...

If an asset is sold (market value) for more or less than its book value that used for tax purposes, and adjustment must be made to the taxable income during the year. How this difference in market value and book value affect the taxable income?

Assuming the test statistic is less than than the critical value, what is your conclusion? a....

Assuming the test statistic is less than than the critical value, what is your conclusion? a. Reject the null hypothesis b. Reject the alternative hypothesis c. Fail to reject the null hypothesis d. Both b. and c. are correct Assuming we reject the null hypothesis in the test above above, what is your interpretation of this result? a. Tesla's new cars can travel further than their old cars. b. Tesla's old cars can travel further than their new cars. c....

Subjects