When There Is an Excess of Fair Value Over Cost

question 6

Multiple Choice

When there is an excess of fair value over cost relative to an identifiable asset,

• A)​the recording of a deferred tax liability is required for the excess.
• B)​the recording of a deferred tax liability is necessary for the amount of the tax rate times the excess.
• C)no amortization of a deferred tax liability is necessary​
• D)​this excess does not create a deferred tax liability that needs to be recorded.

---

Definitions:

Well-being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health.

Menopause

The natural cessation of menstruation that typically occurs in women in their late 40s to 50s, marking the end of reproductive ability.

Progesterone

A steroid hormone produced in the ovaries, placenta, and adrenal glands that plays key roles in the menstrual cycle, maintaining pregnancy, and regulating various bodily functions.

Periods

Regular intervals of time, or the cyclical shedding of the uterine lining in females, marking the menstrual cycle.