Which of the following statement about the acquisition method (to prepare for consolidated financial statement) is...
Which of the following statement about the acquisition method (to prepare for consolidated financial statement) is true?
Multiple Choice
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Consideration transferred is recognized using fair value only if there is no contingent payment.
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Goodwill is recognized as the excess of the fair value of consideration transferred over book value of the subsidiary's net assets.
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Both companies' assets and liabilities are consolidated at their fair values..
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The parent does not use acquisition method if it owns more than 51% of the subsidiary.
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None of the above.
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in excess of the subsidiary’s book value of Stockholders’ Equity
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