For Business Combinations Involving Less Than 100 Percent Ownership, the Acquirer

question 80

Multiple Choice

For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except:

• A) identifiable assets acquired, at fair value.
• B) liabilities assumed, at book value.
• C) non-controlling interest, at fair value.
• D) goodwill or a gain from bargain purchase.
• E) none of these choices is correct.

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Definitions:

Uniform Commercial Code

A set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.

Documents Of Title

Legal documents that evidence a person's right to control the disposition of goods or properties, such as bills of lading or warehouse receipts.

Bailment

The temporary transfer of possession of personal property from one party to another, with the expectation of its return.

Bailee's Lien

A right that allows a bailee (a person who temporarily holds property for another) to retain possession of the property until payment is made.