Under the Provisions of FASB Statement No

question 14

Multiple Choice

Under the provisions of FASB Statement No.141R,in a business combination,when the fair value of identifiable net assets acquired exceeds the investment cost,which of the following statements is correct?

• A)A gain from a bargain purchase is recognized for the amount that the fair value of the identifiable net assets acquired exceeds the acquisition price.
• B)The difference is allocated first to reduce proportionately (according to market value)non-current assets,then to non-monetary current assets,and any negative remainder is classified as a deferred credit.
• C)The difference is allocated first to reduce proportionately (according to market value)non-current assets,and any negative remainder is classified as an extraordinary gain.
• D)The difference is allocated first to reduce proportionately (according to market value)non-current,depreciable assets to zero,and any negative remainder is classified as a deferred credit.

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Definitions:

Depressed Person

A term for someone experiencing depression, a mental health condition characterized by persistent feelings of sadness and loss of interest in activities.

Overwhelming Challenges

Situations or tasks that appear too difficult to manage or overcome given current resources or capacities.

Productive

Refers to the capacity to produce substantial results, outputs, or benefits efficiently.

Frenzied Energy

A state of intense, often unfocused activity and excitement, typically resulting from heightened emotions or nervousness.