P Company Purchased the Net Assets of S Company for $225,000

question 38

Multiple Choice

P Company purchased the net assets of S Company for $225,000. On the date of P's purchase, S Company had no investments in marketable securities and $30,000 (book and fair value) of liabilities. The fair values of S Company's assets, when acquired, were: How should the $45,000 difference between the fair value of the net assets acquired ($270,000) and the consideration paid ($225,000) be accounted for by P Company?

• A) The noncurrent assets should be recorded at $ 135,000.
• B) The $45,000 difference should be credited to retained earnings.
• C) The current assets should be recorded at $102,000, and the noncurrent assets should be recorded at $153,000.
• D) An ordinary gain of $45,000 should be recorded.

Recognize and calculate probabilities involving uniform distributions within given ranges.

Utilize statistical models appropriately in various contexts to estimate probabilities.

Apply statistical reasoning to evaluate and interpret probabilities related to specific real-world scenarios.

Understand various theories and concepts related to persuasion and their applications.

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Definitions:

Payroll Register

A document that details the payments made to employees, including salaries, wages, deductions, and net pay.

Net Payroll

The total amount of wages paid to employees after the deduction of taxes and other withholdings.

IFRS

International Financial Reporting Standards, which are designed to bring consistency to accounting language, practices, and statements on a global scale.

Expected Loss

An estimated amount a company anticipates losing due to credit risk or other potential business risks.