A Company Purchases the Net Assets of B Company Which

question 17

Multiple Choice

A Company purchases the net assets of B Company which consists of land $2,100,000 and a liability of $100,000,paying by issuing 2,000,000 x $1 which is the fair value of the shares in A Company.A Company will record the acquisition as follows:

• A) DR Investment in B $2,000,000 CR Share Capital $2,000,000
• B) DR Land $2,100,000 CR Liability $100,000
• CR Cash $2,000,000
• C) DR Land $2,100,000 CR Liability $100,000
• CR Share Capital $2,000.000
• D) none of the above

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Definitions:

Psychotherapy

A form of treatment for mental health issues, where talking with a trained therapist is used to understand and resolve problematic behaviors, beliefs, feelings, and relationship issues.

Prohibitively Expensive

Describing a cost that is so high it prevents or discourages purchase or usage.

Eclectic

An approach or style that combines elements from various sources or disciplines.

Combination of Treatments

The practice of using multiple therapeutic approaches or interventions simultaneously to address a condition or illness.