Revaluation of Assets to Fair Value in a Business Combination

question 1

Multiple Choice

Revaluation of assets to fair value in a business combination will be accounted for:

• A) in the records of the subsidiary.
• B) on consolidation.
• C) either A or B.
• D) none of the above.

---

Definitions:

Articles Of Incorporation

The document filed with a governmental body to legally document the creation of a corporation.

Corporation

A legal entity that is separate and distinct from its owners, characterized by limited liability, perpetual succession, and ease of transferability of ownership interests.

Document

A written, drawn, presented, or memorialized representation of thought, often serving as legal evidence.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders but not retired, often held to reissue for acquisitions or to resell to the public.