1) Which of the following observations is(are) consistent with the acquisition method of accounting for business combinations?

1. I. Expenses related to the business combination are expensed.
2. II. Stock issue costs are treated as a reduction in the issue price.
3. III. All merger and stock issue costs are expensed.
4. IV. Goodwill may be recorded.

Multiple Choice

• I and II

• IV

• III

• I, II, and IV

2)

Regulation D of the SEC presents important exemptions from full registration requirements for:

Multiple Choice

• foreign companies.

• issuances of securities by savings and loan associations.

• private placements.

• issuances of securities by common carriers regulated by the Interstate Commerce Commission.