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please answer all parts of question e1-1. it is 4 questions. thanks. EXERCISES E 1-1 General questions 1. A business combination in which a new
please answer all parts of question e1-1. it is 4 questions. thanks.
EXERCISES E 1-1 General questions 1. A business combination in which a new corporation is formed to take over the assets and operations of two or more separate business entities, with the previously separate entities being dissolved, is a/an: a Consolidation Merger c Pooling of interests d Acquisition Business Combinations 19 2. In a business combination, the direct costs of registering and issuing equity securities are: a Added to the parent/investor company's investment account b Charged against other paid-in capital of the combined entity c Deducted from income in the period of combination d None of the above 3. An excess of the fair value of net assets acquired in a business combination over the price paid is: a Reported as a gain from a bargain purchase b Applied to a reduction of noncash assets before negative goodwill may be reported c Applied to reduce noncurrent assets other than marketable securities to zero before negative goodwill may be reported d Applied to reduce goodwill to zero before negative goodwill may be reported 4. Cork Corporation acquires Dart Corporation in a business combination. Which of the following would be excluded from the process of assigning fair values to assets and liabilities for purposes of recording the acquisition? (As- sume Dart Corporation is dissolved.) a Patents developed by Dart because the costs were expensed under GAAP Dart's mortgage payable because it is fully secured by land that has a market value far in excess of the mortgage c An asset or liability amount for over- or underfunding of Dart's defined-benefit pension plan None of the above E 1-2 [Based on AICPA) General problems 1. Pat Corporation paid $100,000 cash for the net assets of Sag Company, which consisted of the following Step by Step Solution
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