A Subsidiary Was Acquired for Cash in a Business Combination

question 30

Multiple Choice

A subsidiary was acquired for cash in a business combination on December 31, 2016.The purchase price exceeded the fair value of identifiable net assets.The acquired company owned equipment with a fair value in excess of the book value as of the date of the combination.A consolidated balance sheet prepared on December 31, 2016, would

• A)​report the excess of the fair value over the book value of the equipment as part of goodwill.
• B)​report the excess of the fair value over the book value of the equipment as part of the plant and equipment account.
• C)​reduce retained earnings for the excess of the fair value of the equipment over its book value.
• D)​make no adjustment for the excess of the fair value of the equipment over book value.Instead, it is an adjustment to expense over the life of the equipment.

Identify discrimination and unfair treatment claims related to employment practices.

Recognize potential drawbacks and biases in the job analysis process.

Comprehend pay equity legislation requirements and the job evaluation methods compliant with it.

Differentiate between various job evaluation methods and their suitability for different organizational contexts.