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Larry's Liquor acquired the net assets of Drake's Drinks in exchange for cash. The acquisition price exceeds the fair value of the net assets acquired.
Larry's Liquor acquired the net assets of Drake's Drinks in exchange for cash. The acquisition price exceeds the fair value of the net assets acquired. How should Larry's Liquor determine the amounts to be reported for the plant and equipment, and for longterm debt of the acquired Drake's Drinks?
Plant and Equipment
a Fair value
b Fair value
c Drake's carrying amount
d Drake's carrying amount
LongTerm Debt
Drake's carrying amount
Fair value
Fair value
Drake's carrying amount
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