When a purchaser acquires all the outstanding shares of a company, which of the following is true?

Multiple Choice

The transaction is off the balance sheet and the financial position of the company does not change.

The corporation must record goodwill on the balance sheet.

The purchaser records goodwill as an asset and may depreciate it on his personal books.

The shares have to be revalued and the shareholders' equity section of the corporation's balance sheet must be updated.