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Direct combination costs and amounts incurred to register and issue stock in connection with a business combination. How should those costs be accounted for in

Direct combination costs and amounts incurred to register and issue stock in connection with a business combination. How should those costs be accounted for in a pre-2009 business combination?

Direct Combination Cost Cost Issuance Cost
A) Increase Investment Decrease Investment
B) Increase Investment Decrease Additional paid-in Capital
C) Increase Investment Increase Expenses
D) Decrease Additional paid-in Capital Increase Investment
E) Increase Investment Decrease Investment

Multiple Choice

  • Option A.

  • Option E.

  • Option D.

  • Option C.

  • Option B.

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