Dupuis Ltd

question 12

Multiple Choice

Dupuis Ltd.acquired Waul Ltd.through a business combination using the direct method.How should Waul record this on its books?

• A)Waul should debit an "Investment in Dupuis" account and credit its share capital account.
• B)Waul should debit an "Investment in Dupuis" account and remove all its asset and liability accounts.
• C)Waul should close all its balance sheet accounts.
• D)No entry should be made.

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