If the Cost of a Business Combination Is Greater Than

question 6

Multiple Choice

If the cost of a business combination is greater than the acquired interest in the net fair value of the identifiable assets,liabilities and contingent liabilities of the acquiree:

• A)a gain on bargain purchase results
• B)goodwill has been purchased and must be recognised
• C)the difference is treated as a special equity reserve in the acquirer's accounting records
• D)the difference is treated as a loss and immediately charged to profit or loss of the period in which the business combination occurred.

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Definitions:

Importation

The act of bringing goods or commodities into one country from another, often for trading purposes.

Slaveholders

Individuals or entities that owned slaves, particularly common in historical contexts such as the American South prior to the Civil War.

Prohibition

Refers to the period in the United States during the early 20th century when the manufacture, sale, and transportation of alcoholic beverages were legally prohibited.

Domestic Slave Trade

The buying and selling of slaves within the boundaries of a country, such as the internal trade of slaves in the United States.