(CMA Adapted, Dec 92 #9) in a Business Combination That

question 5

Multiple Choice

(CMA adapted, Dec 92 #9) In a business combination that is accounted for as a purchase and does not create negative goodwill, the assets of the acquired company are to be recorded on the books of the acquiring company at

• A)original cost.
• B)original cost less accumulated depreciation.
• C)fair market value.
• D)book value.
• E)liquidation value.

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Definitions:

War Production Board

An agency of the United States government during World War II tasked with overseeing the production and allocation of materials and fuel necessary for military operations.

Civilian to Military Production

The transition of manufacturing and production processes from civilian to military goods, typically during periods of war or military buildup.

Government Military Contracts

Agreements or contracts between a government and private companies for the provision of goods and services to the military or for defense purposes.

Nation's Top Corporations

The leading companies in a country, typically measured by revenue, profitability, or market capitalization.