Assuming No Impairment in Value Prior to Transfer,assets Transferred by a Parent

question 53

Multiple Choice

Assuming no impairment in value prior to transfer,assets transferred by a parent company to another entity it has created should be recorded by the newly created entity at the assets':

• A)cost to the parent company.
• B)book value on the parent company's books at the date of transfer.
• C)fair value at the date of transfer.
• D)fair value of consideration exchanged by the newly created entity.

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Definitions:

Excessive Vomiting

A condition where vomiting occurs more frequently than normal, potentially leading to dehydration and nutrient imbalances.

Gastroesophageal Reflux Disease

A digestive disorder where stomach acid or contents flow back into the esophagus, irritating its lining.

Mucous Membrane

The moist tissue lining certain internal organs and body cavities, producing mucus to protect and lubricate surfaces.

Peptic Ulcer Disease

A condition where open sores develop on the inside lining of the stomach, upper small intestine, or esophagus, often due to inflammation caused by the bacteria H. pylori, as well as from erosion from stomach acids.