Tanner Company,a Subsidiary Acquired for Cash,owned Equipment with a Fair

question 38

Multiple Choice

Tanner Company,a subsidiary acquired for cash,owned equipment with a fair value higher than the book value as of the date of combination.A consolidated balance sheet prepared immediately after the acquisition would include this difference in:

• A)goodwill.
• B)retained earnings.
• C)deferred charges.
• D)equipment.

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Definitions:

Clayton Act

An antitrust law enacted in the United States to prevent anticompetitive practices and to promote competition.

Code of Ethics

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.

Company Expectations

The standards and objectives set by a business that it expects its employees and operations to meet.