Morin Co Acquired All the Shares of Lightfoot Ltd

question 3

Multiple Choice

Morin Co. acquired all the shares of Lightfoot Ltd. Lightfoot has a number of amortizable capital assets and has properly recorded the related deferred income taxes on its books.
- What deferred income tax adjustment must Morin make for its consolidated financial statements?

• A)Adjustment for any changes in temporary differences due to the difference between carrying values and tax bases of Lightfoot's depreciable capital assets
• B)Adjustment for any changes in temporary differences due to the amortization of fair value increments
• C)Adjustment for any changes in temporary differences due to the amortization of goodwill
• D)No adjustment is necessary.

---

Definitions:

Secondary Receptors

Protein molecules located on cell surfaces or within cells that bind to external signaling molecules after they have interacted with primary receptors, often amplifying the cellular response.

Chemoreceptors

Sensory receptors that respond to chemical stimuli, such as taste, smell, or changes in the blood's chemical composition.

Brainstem

The lower extension of the brain, connecting the cerebrum with the spinal cord, and controlling vital functions such as breathing and heart rate.

Cranial Nerves

Twelve pairs of nerves that are connected directly to the brain or brainstem and are responsible for motor and sensory functions of the head and neck.