Which of the Following Is NOT Considered to Be Part

question 1

Multiple Choice

Which of the following is NOT considered to be part of the acquisition cost of a subsidiary?

• A) The fair value of any assets transferred to the seller.
• B) The fair value of any shares issued.
• C) Due diligence fees paid to accountants, consultants and/or lawyers.
• D)The fair value of any contingent considerations.

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Definitions:

Income Statements

A financial statement that shows a company's revenues and expenses over a specific period, leading to the net income or loss.

Merchandising Company

A business that purchases goods and sells them at a higher price without changing their form.

Manufacturing Company

A type of business that produces finished goods from raw materials through the use of labor and machinery.

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor used to create the product.