Larry's Liquor Acquired the Net Assets of Drake's Drinks in Exchange

question 41

Multiple Choice

Larry's Liquor acquired the net assets of Drake's Drinks in exchange for cash.The acquisition price exceeds the fair value of the net assets acquired.How should Larry's Liquor determine the amounts to be reported for the plant and equipment, and for long-term debt of the acquired Drake's Drinks?
$\quad$ Plant and Equipment $\quad$ Long-Term Debt

• A)\(\quad \)Fair value\(\quad \)\(\quad \)\(\quad \)\(\quad \) \(\quad \)Drake's carrying amount
• B)\(\quad \)?Fair value \(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)Fair value
• C)\(\quad \)?Drake's carrying amount\(\quad \) Fair value
• D)\(\quad \)?Drake's carrying amount \(\quad \)Drake's carrying amount

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