The Value of Synergy Can Be Estimated by the Equation

question 58

Multiple Choice

The value of synergy can be estimated by the equation

• A) V_AB - V_A - V_B
• B) V_AB - V_B - taxes
• C) V_A - V_B - costs
• D) V_A + V_B - revenues

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Definitions:

Straight-Line Method

A method of depreciation that allocates an equal amount of the asset's cost to each accounting period over its useful life.

Depreciation Expense

Apportioning the cost of a concrete asset over its duration of use.

Units-Of-Activity

A depreciation method that allocates expense based on the actual usage or activity level of an asset.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, such as straight-line or declining balance methods.