QUESTION 2 When negative goodwill occurs in a business combination calculation, a The negative goodwill is considered an impairment b The value is allocated first to reduce proportionately (according to market value) non current assets, then to non monetary current assets, and any negative remainder is classified as a deferred credit c allocated first to reduce proportionately (according to market value) non current assets, and any negative remainder is classified as an extraordinary gain d allocated first to reduce proportionately (according to market value) non current, depreciable assets to zero, and any negative remainder is classified as a deferred credit QUESTION 4 Robin Corporation purchased 150,000 previously unissued shares of Nest Inc's $10 par value common stock directly from Nest for $3,400,000 Nest's stockholder's equity immediately before the investment by Robin consisted of $3,000,000 of capital stock and $2,600,000 in retained earnings What is the book value of Robin's investment in Nest a $1,500,000 b $1,680,000 c $2,800,000 d $3,000,000

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QUESTION 2 When negative goodwill occurs in a business combination calculation, a. The negative goodwill is considered an impairment. b. The value is allocated first

QUESTION 2

When negative goodwill occurs in a business combination calculation,

	a.	The negative goodwill is considered an impairment.
	b.	The value is allocated first to reduce proportionately (according to market value) non-current assets, then to non-monetary current assets, and any negative remainder is classified as a deferred credit.
	c.	allocated first to reduce proportionately (according to market value) non-current assets, and any negative remainder is classified as an extraordinary gain.
	d.	allocated first to reduce proportionately (according to market value) non-current, depreciable assets to zero, and any negative remainder is classified as a deferred credit.

QUESTION 4

Robin Corporation purchased 150,000 previously unissued shares of Nest Inc's $10 par value common stock directly from Nest for $3,400,000. Nest's stockholder's equity immediately before the investment by Robin consisted of $3,000,000 of capital stock and $2,600,000 in retained earnings. What is the book value of Robin's investment in Nest?