In which of the following situations will there be an acquisition differential?

Question 9Select one:

a.

The carrying amount of the net assets of the acquired company are equal to their fair value and no goodwill is acquired in the business combination.

b.

The total consideration given and the carrying amount of the net assets of the acquired company at the date of acquisition are the same amount.

c.

When the parent company establishes a new company as a subsidiary.

d.

The total consideration given exceeds the carrying amount of net assets of the acquired company at the date of acquisition.