are these correct h 26 Assignment Mergers and Corporate Control Company A buys Company for $50, when the net asset value of Company B's assets is $40 Which of the following statements best describes the effect of the merger on the merged company's consolidated balance sheet Company B's assets will be written down to reflect the purchase price relative to net asset value Company B's common equity will be written up to reflect the purchase price relative to net asset value Company B's assets will be written up to reflect the purchase price relative to net asset value Company B's common equity will be written down to reflect the purchase price relative to net asset value When reporting merger transactions, the asset values acquired are often reappraised, and the change in value is reported in the financial statements An increase in Inventories will lead to a higher cost of goods sold This will lead to a decrease in earnings per share Suppose the fair market value of goodwill increases during the reporting year Which of the following statements is true about the treatment of goodwill for financial reporting purposes The amount of increase in goodwill value will be added to the earnings in the income statement The amount of increase in goodwill value will not be added to the earnings in the income statement Identify whether the following statements are true or falset The company with a larger market value in a merger is always the acquirer, and the company with a smaller market value in a merger is the target The merger is expected to create synergistic benefits for only the target company False

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are these correct   h 26  Assignment   Mergers and Corporate Control Company A buys Company for $50, when the net asset value of Company B's assets is $40  Which of the following statements best describes the effect of the merger on the merged company's consolidated balance sheet  Company B's assets will be written down to reflect the purchase price relative to net asset value  Company B's common equity will be written up to reflect the purchase price relative to net asset value  Company B's assets will be written up to reflect the purchase price relative to net asset value  Company B's common equity will be written down to reflect the purchase price relative to net asset value  When reporting merger transactions, the asset values acquired are often reappraised, and the change in value is reported in the financial statements  An increase in Inventories will lead to a higher cost of goods sold  This will lead to a decrease in earnings per share  Suppose the fair market value of goodwill increases during the reporting year  Which of the following statements is true about the treatment of goodwill for financial reporting purposes  The amount of increase in goodwill value will be added to the earnings in the income statement  The amount of increase in goodwill value will not be added to the earnings in the income statement Identify whether the following statements are true or falset The company with a larger market value in a merger is always the acquirer, and the company with a smaller market value in a merger is the target  The merger is expected to create synergistic benefits for only the target company False

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are these correct ? h 26: Assignment - Mergers and Corporate Control Company A buys Company for

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Accounting for Governmental and Nonprofit Entities

are these correct ? h 26: Assignment - Mergers and Corporate Control Company A buys Company for

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Accounting for Governmental and Nonprofit Entities

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