Under the Acquisition Method for a Business Combination, the Cost

question 11

Multiple Choice

Under the acquisition method for a business combination, the cost incurred to effect the business combination, such as finders and legal fees are

• A) Considered part of the historical cost of the business.
• B) Expensed as incurred.
• C) Allocated, along with the purchase price of the acquired company's stock to the assets of the acquiree company.
• D) Deferred until a full accounting of all costs to acquire the acquire company are known.

---

Definitions:

Law Enforcement Agencies

Government institutions that are responsible for the prevention, detection, and investigation of crime, as well as the apprehension of offenders.

PATRIOT Act

Short for the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, it is U.S. legislation passed in 2001 aimed at enhancing national security measures.

Equal Employment Opportunity Commission

A federal agency responsible for enforcing laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex (including pregnancy, transgender status, and sexual orientation), national origin, age (40 or older), disability or genetic information.

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.