Which of the Following Statements About a Bargain Purchase Is

question 19

Multiple Choice

Which of the following statements about a bargain purchase is TRUE?

• A)It is reported on the financial statements as an "excess of fair value over cost of assets acquired".
• B)Assets and liabilities of the acquired company are reported at their fair value.
• C)It is reported as a deferred credit on the financial statements called negative goodwill.
• D)Assets and liabilities of the acquired company are reported at net book value.

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Definitions:

Significant Impairment

A considerable reduction or deterioration in the ability to perform normal functions or activities, often used in clinical contexts.

Abnormal Anxiety

Excessive worry or fear that is out of proportion to the actual situation and interferes with daily functioning.

Excessive

Going beyond the usual, necessary, or proper limit or degree; characterized by overindulgence or immoderation.

Antisocial Personality Disorder

The diagnosis given a person who is in frequent conflict with society, yet who is undeterred by punishment and experiences little or no guilt and anxiety.