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Under the acquisition method, when the fair value of net assets is higher than the consideration transferred, then the following entry is recorded? A. Credit

Under the acquisition method, when the fair value of net assets is higher than the consideration transferred, then the following entry is recorded?

A. Credit to goodwill

B. Debit to goodwill

C. Credit to gain on bargain purchase

D. Debit to gain on bargain purchase

E. Long term assets of acquired company are reduced

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