One Company Is Considering Entering into a Business Combination with Another.The

question 69

Multiple Choice

One company is considering entering into a business combination with another.The potential acquirer wishes to acquire the subsidiary's assets and liabilities but wishes to prepare Consolidated Financial Statements using the Fair Market Values of its own assets and liabilities as well of those of its potential subsidiary.Can this be accomplished?

• A)Yes,this is permissible under the Pooling of Interests method)
• B)Yes,this is permissible under the Purchase Method under certain circumstances.
• C)Yes,this would be possible,but only if the New Entity Method is used)
• D)No,this would not be possible under any circumstances as it would be a violation of GAAP.

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Definitions:

Health Care Demanded

Health care demanded is the quantity of health care services individuals are willing and able to consume at various prices, often influenced by factors like income, price of services, and individual health status.

Medicaid

A public health insurance program in the United States for individuals and families with low income and limited resources.

Low-Income People

Individuals or families who earn income significantly below the median levels for their geographical area, often leading to financial hardships.

Dependent Children

Minors who rely on adults, usually their parents or guardians, for financial support and care.