Answered: if accounting records were adjusted…

Business

Accounting

if accounting records were adjusted corresponding to the fair market value amount of the business? Justify your answer.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 29P

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Question

Mr Pierre acquired his business for P10,000,000. The fair market value of the business is P11,000,000. Will it be more useful if accounting records were adjusted corresponding to the fair market value amount of the business? Justify your answer.

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