Sya Ltd Acquired All the Assets and Liabilities of Littman Ltd

question 31

Multiple Choice

Sya Ltd. acquired all the assets and liabilities of Littman Ltd. by issuing common shares to Littman. After this transaction, Littman owned 30% of Sya's outstanding shares. Which of the following statements is true?

• A)Littman Ltd. ceases to exist.
• B)Littman must record its receipt of Sya shares using the equity method.
• C)Sya must prepare single-entity and consolidated financial statements.
• D)Sya should not treat this transaction as an intercorporate investment.

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Definitions:

Funding Sources

Various origins of financial support for businesses or projects, including loans, investments, grants, and personal savings.

Future Earnings

Projected profits or income of a business or investment, anticipated in future periods based on past and current trends.

Venture Capitalist

An investor who provides capital to startup companies and small businesses with perceived long-term growth potential.

Non-Monetary Capabilities

Skills, knowledge, relationships, and other intangible assets that do not have a direct monetary value but contribute to an organization's or individual's success.