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QUESTION 1 1. Assume Large buys 100% of Small, and Small is not dissolved. Under the acquisition method, how should stock issuance costs and direct

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QUESTION 1 1. Assume Large buys 100% of Small, and Small is not dissolved. Under the acquisition method, how should stock issuance costs and direct combination costs be treated? Stock issuance costs and direct combination costs are expensed as incurred. a. Direct combination costs are ignored, and the stock issuance costs result in a reduction to additional paid-in capital. Direct combination costs are expensed as incurred and stock issuance costs result in a reduction to additional paid-in c. capital. d. Both are Both are treated as part of the acquisition consideration transferred

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