Inbusinessgoodwill is:combinations under common control,a) Calculated as in regular business combinationsb) Amortized immediatelyc) Always recognized at fair valued) Not recognized, difference goes to equity

Option a: Calculated as in regular business combinationsThis option is incorrect because, in…

Answered: In business goodwill is: combinations…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter15: Harvesting The Business Venture Investment

Section15.3: Valuing The Equity Or Valuing The Enterprise

Problem 1CC

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Direct cost incurred in a business combination are A. CapitalizedB. ExpensedC. Capitalized, except for costs of issuing equity and debt instrumentsD. Expensed, except for costs of issuing equity and debt instruments
Please do not give solution in image format ?
4. Which of the following items will appear in the statement of changes in equity? a. Extraordinary loss b. Write-off of goodwill c. Transaction instruments d. Transaction costs directly related to issuance of equity instruments costs directly related to issuance of debt
Which of the following is/are true about accounting for business combinations when stock is issued by the acquirer (P) to acquire the stock of the acquiree (S)? I. Costs related to arranging the business combination are added (capitalized) to the Investment in 'S' account. li. Stock issue costs are added (capitalized) to the Investment in 'S' account. III. Costs related to arranging the business combination are expensed. IV. Stock issue costs are treated as a reduction in the issue price (i.e., a reduction in APIC). O A) II and IV only B) Il and IV only C) I only D) I and II only E) III only
Explain thoroughly why it is the answer.
Gains are: Select one: a. Inflows from selling a product or service to a customer. b. Increases in equity resulting from transfers of assets to the company from owners. c. None of the above. d. Increases in equity from peripheral transactions of an entity.
Give me accurate answer
What is the impact on the accounting equation when stock is issued, in exchange for assets?A. both sides increaseB. both sides decreaseC. only the Asset side changesD. neither side changes
Which one of the following has the potential to allow for the greatest amount of off-balance-sheet financing for the investor? Group of answer choices Equity method Equity method with special purpose entities Mark-to-market accounting Consolidation accounting
Which of the following statements regarding equity is not true? It is defined independently of assets and liabilities. O It includes the retained earnings of the entity. It can be increased by additional contributions by the owners. It is increased by profit.
Which is a correct statement below? A. Equity is the residual interest in the liabilities of the entity after deducting all of its assets.B. Subscriptions receivable shall preferably be reflected as a deduction from the related subscribed share capital.C. Share premium is also known as capital stock.D. A deficit is a credit balance in retained earnings.
Dhapa

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In business goodwill is: combinations under common control, a) Calculated as in regular business combinations b) Amortized immediately c) Always recognized at fair value d) Not recognized, difference goes to equity