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question 86

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been deducted from total revenue.

Cost Method

Cost Method is an accounting methodology for investment, where the investment is recorded at its acquisition cost without considering dividends or changes in market value.

Bond Premium

The amount by which the market price of a bond exceeds its principal amount or face value, often occurring when the bond's interest rate is higher than the current market rate.

Acquisition Differential

The difference between the purchase price of an acquired company and the fair value of its identifiable net assets, often accounted for as goodwill or amortized over time.