When Determining the Fair Values of Assets Acquired in an Acquisition

question 40

Multiple Choice

When determining the fair values of assets acquired in an acquisition, the highest level of measurement per GAAP is

• A)​adjusted market value based on prices of similar assets.
• B)​unadjusted market values in an actively traded market.
• C)​based on discounted cash flows.
• D)​the entity's best estimate of an exit or sale value.

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Definitions:

Take Risks

The willingness or decision to engage in actions that have uncertain outcomes, potentially leading to loss or failure in pursuit of opportunities for success or improvement.