In a business combination in which the total fair value of the identifiable assets acquired over liabilities assumed is greater than the consideration paid, the excess fair value is:* O classified as an extraordinary gain. allocated first to reduce proportionately non-current assets then to non-monetary current assets, and any remaining excess over cost is classified as a deferred credit. allocated first to eliminate any previously recorded goodwill, and any remaining excess over the consideration paid is classified as an ordinary gain. allocated first to reduce proportionately non-current, depreciable assets to zero, and any remaining excess over cost is classified as a deferred credit.
In a business combination in which the total fair value of the identifiable assets acquired over liabilities assumed is greater than the consideration paid, the excess fair value is:* O classified as an extraordinary gain. allocated first to reduce proportionately non-current assets then to non-monetary current assets, and any remaining excess over cost is classified as a deferred credit. allocated first to eliminate any previously recorded goodwill, and any remaining excess over the consideration paid is classified as an ordinary gain. allocated first to reduce proportionately non-current, depreciable assets to zero, and any remaining excess over cost is classified as a deferred credit.
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 1EA: Match the correct term with its definition. A. cost principle i. if uncertainty in a potential...
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In a business combination in which the total fair value of the identifiable assets
acquired over liabilities assumed is greater than the consideration paid, the
excess fair value is: *
classified as an extraordinary gain.
allocated first to reduce proportionately non-current assets then to non-monetary
current assets, and any remaining excess over cost is classified as a deferred credit.
allocated first to eliminate any previously recorded goodwill, and any remaining
excess over the consideration paid is classified as an ordinary gain.
allocated first to reduce proportionately non-current, depreciable assets to zero, and
any remaining excess over cost is classified as a deferred credit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a6757ae-8da1-4d32-9415-fb3e19d59d66%2F59cb5c5f-ec56-42fb-9229-87f570ebdcdc%2F858dyv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ull touch
1:27 PM
50%
Expert Q&A
Done
In a business combination in which the total fair value of the identifiable assets
acquired over liabilities assumed is greater than the consideration paid, the
excess fair value is: *
classified as an extraordinary gain.
allocated first to reduce proportionately non-current assets then to non-monetary
current assets, and any remaining excess over cost is classified as a deferred credit.
allocated first to eliminate any previously recorded goodwill, and any remaining
excess over the consideration paid is classified as an ordinary gain.
allocated first to reduce proportionately non-current, depreciable assets to zero, and
any remaining excess over cost is classified as a deferred credit.
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