Which of the Following Statements About a Bargain Purchase Is

question 3

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

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