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(TCO B) Which of the following is a characteristic of a business combination that should be accounted for as an acquisition? The acquired subsidiary must

(TCO B) Which of the following is a characteristic of a business combination that should be accounted for as an acquisition? The acquired subsidiary must be smaller in size than the acquiring parent. The transaction establishes an acquisition basis that is fair value for the company being acquired. The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company. The transaction may be considered to be the uniting of the ownership interests of the companies involved. The combination must involve the exchange of equity securities only.

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