Inventory Was Acquired as Part of a Business Combination at the End

question 33

Multiple Choice

Inventory was acquired as part of a business combination at the end of 20X1. The inventory was sold in 20X2. How should the fair value increment for the inventory at acquisition be treated for consolidation at the end of 20X2?

• A)It should be added to inventory.
• B)It should be added to sales.
• C)It should be added to the cost of goods sold.
• D)It should be added to retained earnings.

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Definitions:

Ethical Behaviour

Conduct that is morally right or acceptable, adhering to established moral principles or societal norms.

Deaf Ear Syndrome

A situation where feedback, concerns, or suggestions are ignored or dismissed by those in positions of authority or by the organization at large.

Performance Pressure

The stress and anxiety experienced by individuals or teams when they are required to perform at high levels, often due to external expectations or demands.

Unethical Behaviour

Actions or decisions that violate moral or professional norms, standards, and practices.