In a Step Acquisition,using the Acquisition Method Per SFAS 141(R),which

question 40

Multiple Choice

In a step acquisition,using the acquisition method per SFAS 141(R) ,which of the following statements is false?

• A)The acquisition method views a step acquisition essentially the same as a single step acquisition
• B)Income from subsidiary is computed by applying a partial year for a new purchase acquired during the year
• C)Income from subsidiary is computed for the entire year for a new purchase acquired during the year
• D)Obtaining control through a step acquisition is a significant re-measurement event
• E)Pre-acquisition earnings are included on the consolidated income statement

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Definitions:

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The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, is a handbook used by healthcare professionals for diagnosing mental disorders.

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The prediction of the likely course and outcome of a disease or condition, often based on the average progress in similar cases.