Durer IncAcquired Sea Corporation in a Business Combination and Sea Corp

question 11

Multiple Choice

Durer Inc.acquired Sea Corporation in a business combination and Sea Corp.went out of existence.Sea Corp.developed a patent listed as an asset on Sea Corp.'s books at the patent office filing cost.In recording the combination,

• A)fair value is not assigned to the patent because the research and development costs have been expensed by Sea Corp.
• B)Sea Corp.'s prior expenses to develop the patent are recorded as an asset by Durer at purchase.
• C)the patent is recorded as an asset at fair market value.
• D)the patent's market value increases goodwill.

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Definitions:

Specific Procedure

A set of established steps or actions designed to achieve a particular outcome or result in a precise manner.

Behavior

The observable actions or reactions of humans or animals in response to external or internal stimuli.

Variable

Any characteristic whose values can change.

Testable Hypothesis

A prediction that has been formulated specifically enough so that it is clear what observations would confirm the prediction and what observations would challenge it.