When the Purchase Price of Another Entity Exceeds the Book

question 87

Short Answer

When the purchase price of another entity exceeds the book value of the entity's net assets the purchaser allocates the excess to identifiable assets and liabilities in order to revalue them to market value and any additional excess is allocated to ____________________.

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Definitions:

New Constitution

Refers to the Constitution of the United States, adopted in 1787, which established the country's national government and fundamental laws, and guaranteed certain basic rights for its citizens.

Civil Liberties

Individual rights protected by law from unjust governmental or other interference, including freedom of speech and the right to privacy.

American Revolution

The period (1765-1783) during which the Thirteen Colonies in North America fought and gained independence from Great Britain, leading to the founding of the United States.

David Ramsay

An American physician, historian, and politician who lived in the late 18th and early 19th centuries, known for his contributions to American medical history and history of the American Revolution.