In an Acquisition Where Control Is Achieved, How Would the Land

question 66

Multiple Choice

In an acquisition where control is achieved, how would the land accounts of the parent and the land accounts of the subsidiary be combined? $$\begin{array} { | l | l | l | } \hline & \text { Parent } & \text { Subsidiary } \\\hline \text { A) } & \text { Book Value } & \text { Book Value } \\\hline \text { B) } & \text { Book Value } & \text { Fair Value } \\\hline \text { C) } & \text { Fair Value } & \text { Fair Value } \\\hline \text { D) } & \text { Fair Value } & \text { Book Value } \\\hline \text { E) } & \text { Cost } & \text { Cost } \\\hline\end{array}$$

• A)Option A
• B)Option B
• C)Option C
• D)Option D
• E)Option E

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Definitions:

Purchasing Power

The ability of an entity, such as a person or a firm, to buy goods or services, typically measured by the amount of goods or services that one unit of currency can buy.

Default Probability

The likelihood that a borrower will fail to meet the obligations of debt repayment within the stipulated terms.

Commodities Market

A physical or virtual marketplace for buying, selling, and trading raw or primary products, such as metals, oil, and grains.

Annual Return

The percentage of profit or loss on an investment over a one-year period.