Q20 In a business combination that is accounted for under the acquisition method, the entity that...
Q20
In a business combination that is accounted for under the acquisition method, the entity that obtains control over one or more businesses and establishes the acquisition date that control was achieved is called the
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Controller. |
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Acquirer. |
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Proprietor. |
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Controlling interest. |
Homework Answers
For each business combination, one of the combining entities shall be identified as the acquirer.
The answer is b) Acquirer
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Q20
In a business combination that is accounted for under the
acquisition method, the entity that...
Under AASB 3, a business combination is: A) Bringing together of separate entities or businesses into...
Under AASB 3, a business combination is: A) Bringing together of separate entities or businesses into one reporting entity B) The formation of an entity that consists of a number of separate entities that together forms a combined entity known as a ‘Group’ C) Where one entity (the acquirer) obtains control of one or more other businesses (the acquiree) D) All the above
Q27 Under the acquisition method of accounting for a business combination, goodwill is equal to The...
Q27 Under the acquisition method of accounting for a business combination, goodwill is equal to The acquired company's ability to generate excess profits. The excess of the cost of the acquisition plus the fair value of the noncontrolling interest over the fair value of the acquiree's net assets. The excess of the cost of the acquisition over the fair value of the acquiree's net assets. The excess of the fair value of acquiree's net assets over the cost of acquisition.
When considering an acquisition, which of the following is NOT a method by which one company...
When considering an acquisition, which of the following is NOT a method by which one company may gain control of another company? Purchase of the majority of outstanding voting stock of the acquired company. Purchase of all the outstanding voting stock of the acquired company. Purchase of all assets and liabilities of another company. Purchase of 25% of outstanding voting stock of the acquired company. The GAAP defines the accounting concept of a business combination as a transaction or other...
QUESTION 4 AASB 3 defines a business combination as 'a transaction or other event in which...
QUESTION 4 AASB 3 defines a business combination as 'a transaction or other event in which an acquirer obtains control of one or more businesses True False QUESTION 5 asset. Computer software is an example of a(n) intangible tangible current None of the answers given are correct.
1.Under the acquisition method, when are most identifiable assets acquired, liabilities assumed, and non-controlling interests in...
1.Under the acquisition method, when are most identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree recognized? Select one: a. When an acquirer is identified b. Acquisition date c. Date of verbal agreement d. 90 days after acquisition date 2.Which of the following is not an example of a transaction cost? Select one: a. Finder's fee b. Investigatory costs c. Depreciation costs d. Facilitatory costs 3.Which of the following is not a step for acquiring a subsidiary? Select...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume ...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume that a parent company acquires an 80% interest in its subsidiary for a purchase price of $620,800. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that the parent believes is worth $50,000 more than its book value, an: unrecorded Patent that the parent valued...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume a parent...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $924,000. The excess of the total fair value of the controlling and noncontrolling Interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building in PPE, net) that is worth $88,000 more than its book value, an unrecorded patent with a fair value of $144,000, and Goodwill...
1. Which of the following statements regarding a bu wing statements regarding a business combination is...
1. Which of the following statements regarding a bu wing statements regarding a business combination is wrong? B. Costs of registering equity se Osts of registering equity securities to be issued by the acquiring company are not expensed registering equity securities to be issued by the acquiring company do not affect the amount of goodwill to be recorded by the acquiring will to be recorded by the acquiring company. costs related to the business combination are expensed when incurred. company...
Ben, Jason, and Kelly are planning on forming a business together. The business will begin as...
Ben, Jason, and Kelly are planning on forming a business together. The business will begin as of 1/1/19 (assets transferred as of this day). They plan on transferring the following assets to the business: Asset Original Cost FMV Date of Acquisition Liabilities Ben: Computer $15,000 $11,000 1/1/16 $0 Cash 14,000 Jason: Car $30,000 $25,000 1/1/17 $20,000 Cash 20,000 Kelly: Office Furn. $40,000 $25,000 1/1/18 $0 (Note – You have to...
39 Under the direct write-off period and is collected in the the journal entry? method, when...
39 Under the direct write-off period and is collected in the the journal entry? method, when an acount receivable is written off in one accounting ollowing accounting period, which of the following would be included in an accou per 40. A note on which no rate of interest is specified is a(n) 41. When a business endorses 42. The person who promises 43. The face amount of a note that is promised to be paid at maturity is called the...
When considering an acquisition, which of the following is NOT a method by which one company may gain control of another company? Purchase of the majority of outstanding voting stock of the acquired company. Purchase of all the outstanding voting stock of the acquired company. Purchase of all assets and liabilities of another company. Purchase of 25% of outstanding voting stock of the acquired company. The GAAP defines the accounting concept of a business combination as a transaction or other...
QUESTION 4 AASB 3 defines a business combination as 'a transaction or other event in which an acquirer obtains control of one or more businesses True False QUESTION 5 asset. Computer software is an example of a(n) intangible tangible current None of the answers given are correct.
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume that a parent company acquires an 80% interest in its subsidiary for a purchase price of $620,800. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that the parent believes is worth $50,000 more than its book value, an: unrecorded Patent that the parent valued...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $924,000. The excess of the total fair value of the controlling and noncontrolling Interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building in PPE, net) that is worth $88,000 more than its book value, an unrecorded patent with a fair value of $144,000, and Goodwill...
1. Which of the following statements regarding a bu wing statements regarding a business combination is wrong? B. Costs of registering equity se Osts of registering equity securities to be issued by the acquiring company are not expensed registering equity securities to be issued by the acquiring company do not affect the amount of goodwill to be recorded by the acquiring will to be recorded by the acquiring company. costs related to the business combination are expensed when incurred. company...
39 Under the direct write-off period and is collected in the the journal entry? method, when an acount receivable is written off in one accounting ollowing accounting period, which of the following would be included in an accou per 40. A note on which no rate of interest is specified is a(n) 41. When a business endorses 42. The person who promises 43. The face amount of a note that is promised to be paid at maturity is called the...
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