Homework Answers
Answer : False
Explanation:
A statutory merger is a business combination in which only one of the two companies continues to exist as a legal corporation. It is not a illegal business.
The acquired company dissolves as a separate corporation and becomes a division of acquiring company.
The acquiring company acquired the net assets are reported at their fair values.
Net assets of the acquired company are revalued to their fair values and any excess of consideration is transferred over fair value of net assets acquires allocated to goodwill.
Thus the given statement is false.
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