Mega Corporation Acquired 65% of the Voting Shares of Forko

question 34

Multiple Choice

Mega Corporation acquired 65% of the voting shares of Forko Ltd.Mega consolidated its accounts by restating assets and liabilities of the subsidiary at fair value on the date the shares were acquired.Which of the following methods for accounting for the business combination is being used by Mega Corporation?

• A)Purchase method
• B)Fair value method
• C)Pooling method
• D)Current replacement cost method

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