Choose the correct. According to the acquisition method of accounting for business combinations, costs paid to attorneys and accountants for services in arranging a merger should bea. Capitalized as part of the overall fair value acquired in the merger.b. Recorded as an expense in the period the merger takes place.                c. Included in recognized goodwill.d. Written off over a five-year maximum useful life.

Q: What is a statutory merger?a. A merger approved by the Securities and Exchange Commission.b. An…

A: The correct answer is Option (d).

Q: . what is the basis for consolidation? 2. is goodwill being remeasured to fair value at each…

A: Consolidated financial statements refer to that financial statement that reflects the overall…

Q: In the business combination of Polka and Spot Select one: a. all of the costs except those of…

A: Common acquisition-related costs addressed in  Business Combinations are: Legal Accounting and due…

Q: Choose the correct. What is a statutory merger?a. A merger approved by the Securities and Exchange…

A: Merger: It is a process or an agreement where two or more firms combine together to form one new…

Q: Since its enactment, PSAK 22: Business Combinations must be applied to all acquisitions. Explain how…

A: Solution of (a) A business combination is when a buyer takes control of another business by way of a…

Q: In a business combination resulting in a parent-subsidiary relationship, the identifiable net assets…

A: “Since you have asked multiple questions, we will solve the first question for you.  If you want a…

Q: Which of the following is NOT true with regard to the statutory consolidation form of business…

A: Business combination is a form of arrangement or agreement between two or more than two entities in…

Q: Use the following information for the next five questions: On January 1, 20x1, Bass Co. issued…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In a pre-2009 business combination, Acme Company acquired all of Brem Company’s assets and…

A: Given information is: In a pre-2009 business combination, Acme Company acquired all of Brem…

Q: In a merger of consolidation, or transfer to a controlled corporation, loss is deductible. Group of…

A: Kinds of tax-free exchange include: Transfer to a controlled corporation Merger or consolidation

Q: Acquisition accounting requires an acquirer and an acquirer to be identified for every business…

A: Business combination is the arrangement and agreement between two or more than two entities in which…

Q: will enter into liquidation and DIAPHANOUS agreed to reimburse TRANSPARENT for liquidation costs…

A: Computation of Purchase Consideration = 4,000,000 + 200,000 = 4,200,000

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: Goodwill is an intangible asset that is related to the takeover of one company by another. In fact,…

Q: Choose the correct. A company acquires a subsidiary and will prepare consolidated financial…

A: Initial value method: The dividends are recorded as income under the initial value method. The…

Q: On January 1, 20x1, DIAPHANOUS Co. acquired all of the identifiable assets and assumed all of the…

A: The consideration transferred on the business combination is computed as follows:   Amount Cash…

Q: According to the acquisition method of accounting for business combinations, costs paid to attorneys…

A:

Q: Please answer the following questions relating to unrealized profit in a business combination. 1)…

A: Unrealized gains are prospective profits that exist on paper as a consequence of an investment. This…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO Purchase consideration of CARDO CO =…

Q: On January 1, 20X1, Par Inc acquires 85.77% of Sub Corp for $211,625 in cash. Immediately before the…

A: 1. Fair value method 2. net assets method

Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…

A: Since you have asked multiple question, we will solve the Second question for you. If you want any…

Q: ABC Company acquired XYZ Company in an acquisition. What date should be used as the acquisition date…

A: Acqusition Acqusition which is describe as the purchase the control of over another companies shares…

Q: A business combination resulting to a goodwill is accounted using acquisition method. In the…

A: Acquisition accounting refers to the process of accounting through which the assets, liabilities,…

Q: Assume that in the first step of the reorganization, Auto Corp. will exchange $6,190,273 worth of…

A: When one company acquires another company the acquiring company is a parent and another is a…

Q: Which of the following is NOT true with regard to the statutory consolidation form of business…

A: The statutory consolidated form of business combination has 1. The combining entities cease to 3xist…

Q: Which of the following is included in the computation of the consolidated balance of assets at the…

A: Goodwill as a result of the business combination

Q: If a revaluation of the subsidiary’s assets is performed on consolidation, the subsidiary’s assets…

A: The subsidiary company is the company acquired by the holding or parent company with purchase of…

Q: Restructuring provisions Are generally not recognized as part of business combination unless the…

A: Restructuring provisions means provisions for estimated cost of reorganisation of a company at the…

Q: When an entity sells a non-current asset at a profit to another entity within the same group, which…

A: Consolidation is the process in which parent company prepares financial statement with both parent…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired net assets of CARDO CO. and SYANO CO. Purchase consideration of CARDO CO. =…

Q: A parent buys 32 percent of a subsidiary in one year and then buys an additional 40 percent in the…

A: Identify the appropriate answer for the given statement from the given choices. Option (a)…

Q: A bargain purchase arises when the price paid to acquire a controlling interest in another company…

A: A bargain purchase arises when an acquirer gains control of an acquiree whose fair value of net…

Q: At what point during an acquisition does the acquiring firm's shareholders stand the most to gain?…

A: The company is said to be an acquirer when it purchases more than 50% shares of the target company.…

Q: Hobbes Corporation’s purchase of stock of Tiger Company gave Hobbes voting control over Tiger. A…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Gain on bargain purchase

A: Gain on bargain purchase is included as goodwill under the assets' side of the consolidated balance…

Q: Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…

A: Company A acquired 70% of Company B Cash price paid = $14 million The share capital of Company B= $8…

Q: On January 1, 2010 Hand acquires 100% of Finger in a statutory merger. At acquisition date the…

A: A merger is the amalgamation of two companies into a single entity by either discontinuing the old…

Q: Entity earnings Industry earnings in pesos P 700,000 Year in percent 2012 11 2013 800,000 11 2014…

A: ABC Corporation is planning to purchase another entity. ABC gathered the following information based…

Q: A business combination resulting to a goodwill is accounted using acquisition method. In the…

A: In the given case A business combination resulting to a goodwill is accounted using acquisition…

Q: 1. Prepare the Statement of Financial Position (SFP) of Tanangonan after the merger. 2. Determine…

A: Merger: Merger can be defined as the agreement between two companies that lead to creation of a new…

Q: Explain how purchase accounting is implementedin a merger. Does the accounting profession nowrequire…

A: Purchase accounting can be defined as the practice of revising the assets and liabilities of the…

Q: Key questions to consider when determining the appropriate consolidation adjustment entries include…

A: Consolidation of the financial statement is a process of combining the financial statements of the…

Q: When the parent's Investment in S account is eliminated in the consolidation process, what replaces…

A: The aim of this Indian Accounting Standard (Ind AS) is to define rules for the preparation of…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: The Vary Company has total assets with a book value of $3,000,000 and a fair value of $4,000,000. A…

A: This is a structure of variable interest entity wherein the primary company does not has the voting…

Q: When two proprietors decide to combine their businesses, generally accepted accounting principles…

A: The accounting standards state that when two businesses are coming together to work as a single…

Q: This distinguishes a business combination from other types of investment transactions. Obtaining of…

A: Business combination is defined as the transaction under which the acquirer gains the control over…

Q: Rivendell Corporation and Foster Company merged as of January 1, 2019. To effect the merger,…

A: