In a Business Combination Accounted for as an Acquisition, How

question 6

Multiple Choice

In a business combination accounted for as an acquisition, how should the excess of fair value of identifiable net assets acquired over implied value be treated?

• A) Amortized as a credit to income over a period not to exceed forty years.
• B) Amortized as a charge to expense over a period not to exceed forty years.
• C) Amortized directly to retained earnings over a period not to exceed forty years.
• D) Recognized as an ordinary gain in the year of acquisition.

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Definitions:

Organ Of Corti

A structure located in the inner ear, essential for converting sound vibrations into nerve impulses, leading to hearing.

Organ Of Corti

A structure in the cochlea of the inner ear that contains hair cells, which act as the sensory receptors for hearing.

Basilar Membrane

A key structure in the cochlea of the inner ear, which plays a critical role in the process of hearing by vibrating in response to sound waves.

Hair Cells

Specialized sensory cells located in the ear that detect sound waves and convert them into nerve signals.