Mega Corporation Acquired 65% of the Voting Shares of Forko

question 33

Multiple Choice

Mega Corporation acquired 65% of the voting shares of Forko Ltd for €10 billion and used the purchase method of accounting for the merger. Mega Corporation's interest in Forko Ltd had a restated value of €950 million. How should Mega account for the difference?

• A)as Gain from Acquisition on the current period income statement
• B)as Goodwill on the consolidated balance sheet
• C)as a Loss from Merger on the current period income statement
• D)as Additional Paid-in Capital on the consolidated balance sheet

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Definitions:

Collectives

Large groups of people who share common interests but may not have as much interaction or personal connection as a more tightly-knit group.

Panic

A sudden overwhelming fear or anxiety that often causes wildly unthinking behavior or mass hysteria, usually in response to a particular event or situation.

Overcrowding Disasters

Catastrophic events resulting from too many people being confined in a space that cannot safely accommodate them, often leading to injury or death.

Deindividuation

A psychological state where an individual loses self-awareness and personal responsibility, often occurring within groups and leading to uninhibited behaviors.