Under the Single-Date Method,goodwill Would Be Recognised

question 38

Multiple Choice

Under the single-date method,goodwill would be recognised.

• A) at the point in time when the parent entity ultimately gains control of the subsidiary.
• B) at the time when each additional acquisition of shares is made.
• C) as part of equity in the parent's books.
• D) at the point in time when the subsidiary shareholders acknowledge that they will sell their shareholdings to the parent entity.
• E) None of the given answers.

---

Definitions:

Revenue Act of 1916

A United States federal law that aimed to increase tax revenues for the preparation of World War I, imposing an excess profits tax and increasing estate and income taxes.

Espionage Act

A United States federal law passed in 1917 that was designed to prevent the support of U.S. enemies during wartime, making it a crime to promote insubordination in the military or to interfere with military recruitment.

AFL

The American Federation of Labor, a national federation of labor unions in the United States founded in 1886, focusing on better wages, hours, and working conditions.

War Effort

The collective actions and resources of a nation or group of nations mobilized to support military operations during a time of war.