Company X acquired 100% of the voting shares of Company Y for $137,500 on 1/1/2022. The fair value of the net assets of Company Y at the date of acquisition was $150,000. This is an example of a(n): Select one: O O O a. revaluation adjustment b. bargain purchase c. extraordinary loss d. positive differential

Company X acquired 100% of the voting shares of Company Y for $137,500 on 1/1/2022. The fair value of the net assets of Company Y at the date of acquisition was $150,000. This is an example of a(n): Select one: O O O a. revaluation adjustment b. bargain purchase c. extraordinary loss d. positive differential

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Company X acquired 100% of the voting shares of Company Y for $137,500 on 1/1/2022. The fair
value of the net assets of Company Y at the date of acquisition was $150,000. This is an example
of a(n):
Select one:
O
O
FELIC
a. revaluation adjustment
b. bargain purchase
c. extraordinary loss
d. positive differential
id

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