At the Control Date a Consolidation Goodwill Asset May Be

question 26

Multiple Choice

At the control date a consolidation goodwill asset may be justified as follows:
I.As an internal synergy of the acquiree
II.As a synergy of the newly formed group
III.As the cost of gaining control of the acquiree
IV.As the result of making a bad deal.

• A)I
• B)I and II
• C)All of I, II, III and IV
• D)I, II and III.

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Definitions:

Oxidizing Agent

A substance that gains electrons and thereby causes another substance to be oxidized in a chemical reaction.

Chemical Reaction

A chemical reaction is a process that leads to the transformation of one set of chemical substances to another through the breaking and forming of chemical bonds.

Evaporative Cooling

A natural or artificial process where the evaporation of a liquid into a gas absorbs heat, reducing the temperature of the surrounding environment.

Specific Heat

The amount of heat per unit mass required to raise the temperature of a substance by one degree Celsius.