If the Fair Value of the Net Assets Acquired in a Business

question 29

Multiple Choice

If the fair value of the net assets acquired in a business combination is greater than the purchase price, the difference is called

• A) organizational costs.
• B) contributed surplus.
• C) purchased goodwill.
• D) negative goodwill or bargain purchase.

---

Definitions:

Lifetime

The duration or extent of a person's life or the existence period of an object, product, or agreement.

Senate

A legislative assembly in some countries, often part of a bicameral system, tasked with making and passing laws.

Presidential Election

A formal decision-making process by which a country's citizens choose an individual to hold the office of President.

Defamation

A false communication that harms another's reputation, which can be in written form (libel) or spoken form (slander).