1. Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue to exist as a separate corporation. Entries for the consolidation of Lisa and Victoria would be recorded in A. a worksheet. B. Lisa's general journal. C. Victoria's general journal. D. Victoria's secret consolidation journal. E. the general journals of both companies. Using the acquisition method for a business combination, goodwill is generally defined as: 2. A. Cost of the investment less the subsidiary's book value at the beginning of the year. B. Cost of the investment less the subsidiary's book value at the acquisition date C. Cost of the investment less the subsidiary's fair value at the beginning of the year. D. Cost of the investment less the subsidiary's fair value at acquisition date. E. is no longer allowed under federal law. 3. Which one of the fofowing is a charactenistic of a business combination accounted for as an acquisition? A. The combination must involve the exchange of equity securities only B. The transaction establishes an acquisition fair value basis for the company being acquired C. The two companies may be about the same sizre, and t is difficult to determine the acquired company and the acquiring company D. The transaction may be ponsidered to be the uniting of the ownership interests of the companies involved E. The acquired subsidiery must be smaller im sze than the acquining parent