The Acquisition Analysis Calculates the Fair Value of the Net

question 45

Multiple Choice

The acquisition analysis calculates the fair value of the net identifiable assets and liabilities acquired based on the book value of the pre-acquisition equity of the subsidiary, adjusted for the following:

• A) previously recorded goodwill in the subsidiary at acquisition date
• B) fair value adjustments for the assets and liabilities that were recorded in the subsidiary's accounts at acquisition date based on carrying amounts different from fair value
• C) the fair value of the assets and liabilities not recorded in the subsidiary's accounts at acquisition date
• D) all of the options are correct

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