A business combination in which a new corporation is formed to take over the assets and operations of two or more separate business entities, with the previously separate entities being dissolved, is a/an:

Consolidation

Merger

Pooling of interests

Acquisition

In a business combination, the direct costs of registering and issuing equity securities are

Added to the parent/investor companys investment account

Charged against other paid-in capital of the combined entity

Deducted from income in the period of combination

None of the above

An excess of the fair value of net assets acquired in a business combination over the price paid is

Reported as a gain from a bargain purchase

Applied to a reduction of noncash assets before negative goodwill may be reported

Applied to reduce noncurrent assets other than marketable securities to zero before negative goodwill may be reported

Applied to reduce goodwill to zero before negative goodwill may be reported

Cork Corporation acquires Dart Corporation in a business combination. Which of the following would be excluded from the process of assigning fair values to assets and liabilities for purposes of recording the acquisition? (Assume Dart Corporation is dissolved.)

Patents developed by Dart because the costs were expensed under GAAP

Darts mortgage payable because it is fully secured by land that has a market value far in excess of the mortgage

An asset or liability amount for over- or underfunding of Darts defined-benefit pension plan

None of the above