If the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be * O accounted for as goodwill. allocated to gain on acquisition allocated to reduce current and long- lived assets. O allocated to reduce long-lived assets.

If the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be * O accounted for as goodwill. allocated to gain on acquisition allocated to reduce current and long- lived assets. O allocated to reduce long-lived assets.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 9MC

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Question

If the value implied by the purchase
price of an acquired company exceeds
the fair values of identifiable net
assets, the excess should be *
O accounted for as goodwill.
allocated to gain on acquisition
allocated to reduce current and long-
lived assets.
O allocated to reduce long-lived assets.

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If the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be A. Allocated to reduce current and long-lived assetsB. Allocated to reduce long-lived assetsC. Allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain.D. Allocated goodwill
if the value implied by the purchase price of an acquired company exceeds the fair values of the identifiable net assets, the excess should be a. allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain b. allocated to reduce current and longlived assets c. allocated to gain on acquisition d. allocated to goodwill
f the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be A. Allocated to reduce long-lived assets B. Allocated to reduce current and long-lived assets C. Allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain. D. Allocated goodwill
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In a business combination, goodwill is defined as the excess of acquisition cost over the a. fair value of assets acquired. b. fair value of assets acquired less the liabilities assumed. c. net book value of assets acquired. d. book value of assets acquired less the liabilities assumed.
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