Sya Ltd Acquired All the Assets and Liabilities of Littman Ltd

question 40

Multiple Choice

Sya Ltd. acquired all the assets and liabilities of Littman Ltd. by issuing common shares to Littman. After this transaction, Littman owned 30% of Sya's outstanding shares. How should Sya record Littman's assets and liabilities on its books?

• A)At their original cost
• B)At their net book value
• C)At their fair market value
• D)At their fair market value plus an allocated share of goodwill to each item

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