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At the beginning of the current year, each charity combines with another similar charity. In both cases, the similar charity has assets worth $ 7
At the beginning of the current year, each charity combines with another similar charity. In both cases, the similar charity has assets worth $ but with a net book value of $ Neither similar charity has any liabilities. Both Charity A and Charity B pay $ in cash to make their acquisitions. Charity A acquires a charity that gets most of its resources through exchange transactions. It sells cookies and popcorn. Charity B acquires a charity that gets most of its resources through donations. Complete the matching below for the accounting by the charities for the acquisitions, specifically for the $ excess of cash paid over the fair value of the assets acquired. Recorded as goodwill Recorded as a reduction in Choose... net assets Overall effect of the two charities' accounting
At the beginning of the current year, each charity combines with another similar charity. In both cases, the similar charity has assets worth $ but with a net book value of $ Neither similar charity has any liabilities.
Both Charity A and Charity B pay $ in cash to make their acquisitions.
Charity A acquires a charity that gets most of its resources through exchange transactions. It sells cookies and popcorn.
Charity B acquires a charity that gets most of its resources through donations.
Complete the matching below for the accounting by the charities for the acquisitions, specifically for the $ excess of cash paid over the fair value of the assets acquired.
Recorded as goodwill
Recorded as
a reduction in Choose...
net assets
Overall effect
of the two
charities'
accounting
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