Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Question
Chapter 12, Problem 9MC
To determine
Identify the correct option for the given statement.
Expert Solution & Answer
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Students have asked these similar questions
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
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 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
Chapter 12 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 12 - Prob. 1GICh. 12 - Prob. 2GICh. 12 - Prob. 3GICh. 12 - Prob. 4GICh. 12 - Prob. 5GICh. 12 - Prob. 6GICh. 12 - Prob. 7GICh. 12 - What activities are included in RD? Which are...Ch. 12 - What elements of RD activities does a company...Ch. 12 - How does a company record a patent worth 100,000...
Ch. 12 - Prob. 11GICh. 12 - Prob. 12GICh. 12 - Over how many years are patents amortized?...Ch. 12 - Prob. 14GICh. 12 - Prob. 15GICh. 12 - Prob. 16GICh. 12 - Prob. 17GICh. 12 - Prob. 18GICh. 12 - Prob. 19GICh. 12 - Prob. 20GICh. 12 - What is the proper time or time period over which...Ch. 12 - Prob. 2MCCh. 12 - Prob. 3MCCh. 12 - Which of the following assets typically are...Ch. 12 - Prob. 5MCCh. 12 - Prob. 6MCCh. 12 - Prob. 7MCCh. 12 - Prob. 8MCCh. 12 - Prob. 9MCCh. 12 - Prob. 10MCCh. 12 - Steel Magnolia Incorporated purchased a trademark...Ch. 12 - Match the following items with correct accounting...Ch. 12 - Notting Hill Company incurred the following costs...Ch. 12 - Hook Corp. incurred the following start-up costs,...Ch. 12 - Mystic Pizza Company purchased a patent from Prime...Ch. 12 - Mystic Pizza Company purchases a franchise from NY...Ch. 12 - Prob. 7RECh. 12 - Prob. 8RECh. 12 - Prob. 9RECh. 12 - Prob. 10RECh. 12 - Prob. 1ECh. 12 - On January 4, 2019, Franc Company purchased for...Ch. 12 - On January 11, 2019, Hughes Company applied for a...Ch. 12 - Gansac Publishing Company signed a contract with...Ch. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - KLK Clothing Company manufactures professional...Ch. 12 - Cressman Company incurred RD costs for various...Ch. 12 - In 2019, Lalli Corporation incurred RD costs as...Ch. 12 - Kling Company was organized in late 2019 and began...Ch. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Company is considering purchasing EKC Company....Ch. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Halpern Companys controller prepared the following...Ch. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Hamilton Companys balance sheet on January 1,...Ch. 12 - Prob. 8PCh. 12 - Lee Manufacturing Corporation was incorporated on...Ch. 12 - Information concerning Tully Corporations...Ch. 12 - Prob. 11PCh. 12 - In examining Samson Manufacturing Companys books,...Ch. 12 - Prob. 2CCh. 12 - Prob. 3CCh. 12 - Prob. 4CCh. 12 - On June 30, 2019, your client, Sprauge...Ch. 12 - Prob. 6CCh. 12 - NBC paid 401 million for the rights to televise...Ch. 12 - Prob. 8C
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Similar questions
- 1. How much is the fair value of the net assets of Sub? 2. How much is the goodwill/(gain from bargain purchase) at the date of acquisition? 3. How much is the total assets at the date of acquisition?arrow_forwardIn 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.arrow_forwardValuing assets at the amount of cash or equivalents paid or the fair value of the consideration given to acquire them at the time of acquisition most closely describes which measurement of fi nancial statement elements? B . Historical cost.arrow_forward
- Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration given to acquire them at the time of acquisition most closely describes which measurement of fi nancial statement elements? A . Current costarrow_forwardWhen nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired at: a.The fair value of the nonmonetary asset surrendered minus cash paid. b.The book value of the asset received minus cash paid. c.The fair value of the nonmonetary asset surrendered plus cash paid. d.The fair value of the nonmonetary asset surrendered plus cash received.arrow_forwardHow is goodwill or gain from bargain purchase computed? Group of answer choices a. The difference between the sum of (a) consideration transferred; (b) non-controlling interest in the acquiree; and (c) acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree; and the acquisition-date fair value of net identifiable assets acquired. b. The excess of the acquisition-date fair value of net identifiable assets acquired and there carrying amounts in the acquiree's books. c. The difference between the consideration transferred, including non-controlling interest in the acquiree, and the acquisition-date fair value of net identifiable assets acquired. d. The difference between the purchase price and the acquisition-date fair value of net identifiable assets acquired.arrow_forward
- The identifiable assets acquired and liabilities assumed in a business combination are generally measured at: a. Acquisition-date fair values b. Previous carrying amounts c. Fair value less cost to sell d. Costarrow_forwardThe cost of intangible asset acquired in business combination is recognized by entity in its book at: a. Cost of acquisition date b. Either at cost or fair value at acquisition date c. Fair value at acquisition date d. Fair value at end of the reporting periodarrow_forwardQuestions: a. How much is the Goodwill/Gain on Bargain Purchase? b. How much is the Consolidated Assets? c.arrow_forward
- Fair value as a method of asset measurement is defined as: Multiple Choice O O the cost of an asset adjusted for the depreciation or amortization accumulated over its lifetime. price that would be received to sell assets in an orderly transaction between market participants on a given date. the net amount of cash into which an asset could be converted in the ordinary course of business. the value of what is given in exchange for the asset at its initial acquisition.arrow_forwardWhen nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired at:arrow_forwardS1: Under the acquisition method, if the fair values of identifiable net assetsexceed the value implied by the purchase price of the acquired company, theexcess should be accounted for goodwill. S2: With an acquisition, direct andindirect expenses are considered a par of the total cost of the acquiredcompany. A. Only S1 is correct.B. Both statements are correct.C. Both statements are incorrect.D. Only S2 is correct.arrow_forward
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