Upon initial consolidation on the part of an acquiring company that chose to use a stock purchase instead of an asset purchase:

Question 3 options:

a)	The acquired company would recognize a gain if the price paid exceeds the book value of net assets acquired

b)	The acquiring company must book goodwill

c)	The consolidated balances of the acquiring company would differ from if they performed an asset purchase owing to the consideration being paid to the shareholders instead of directly to the acquired company

d)	The consolidated balances of the acquiring company would be the same as if they did an asset purchase