Gabraile Company Acquired Itsy Inc

question 112

Multiple Choice

Gabraile Company acquired Itsy Inc. for a price that was substantially less than the fair value of the identifiable net assets acquired. The difference between the fair value of the net identifiable assets and the bargain purchase price is ________.

• A) recorded as negative goodwill
• B) reported as a gain that increases income from continuing operations
• C) allocated to reduce carrying value for each purchased asset
• D) reported as a gain that increases other comprehensive income

---

Definitions:

Death Rate

The statistical measure of the number of deaths per unit of population, typically expressed per 1,000 or 100,000 individuals per year.

Incidence

The occurrence, rate, or frequency with which a disease, crime, or something similar happens within a particular group, area, or population.

Smoking

The act of inhaling and exhaling the smoke of tobacco or other substances, which is a well-known risk factor for many diseases.

Lung Cancer

A type of cancer that originates in the lung tissues, often associated with smoking and exposure to toxic substances.