Company X requires 100% of the voting shares of companywide for $275,000 on December 31 20X8. The fair value of net assets of company ask at the data acquisition was $300,000. This is an example of a(an):

A. Positive differential

B. Bargain purchase

C extraordinary loss

D.Re-evaluation adjustment

Which term refers to the practice of revaluing an acquired subsidiaries assets and liabilities to their fair value is directly on that subsidiaries books at the date of acquisition?

A. Fair value accounting

B. Push down accounting

C. Fully adjusted method

D. Reciprocal ownership

Which of the following observations is not consistent with the push down accounting?

A. The revaluation capital account is part of the subsidiaries stockholders equity

B. No differential arises in the consolidation process

C. Revaluation capital count is eliminated and preparing consolidated statements

D. Eliminating entries related to the differential are needed in the worksheets