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In process R&D Oa.is written-off immediately to retained earnings Ob.is only an issue when acquisition accounting is used Ocis capitalized on the balance sheet and
In process R&D Oa.is written-off immediately to retained earnings Ob.is only an issue when acquisition accounting is used Ocis capitalized on the balance sheet and never amortized Odis expensed immediately under pooling of interests QUESTION 15 When an acquisition is made and accounted for using the purchase method, the post-acquisition retained eamings account Oa is the pre-acquisition retained eamings account of the acquiring company only Ob is the pre-acquisition retained eamings accounts of the acquiring company plus net income of acquired company in year of acquisition Oc is the sum of the pre-acquisition retained earnings accounts of the two combining companies Od is the pre-acquisition retained earnings accounts of the acquiring company less treasury stock of the acquired company
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