Business combination Business combination refers to a transaction by which a company acquires some other existing company and obtains the control of that other company. To explain: The reason of not including the income earned in the middle of the year by the company in the calculation of net income of the combined company.

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Chapter 1, Problem 1.8Q

To determine

Business combination

Business combination refers to a transaction by which a company acquires some other existing company and obtains the control of that other company.

To explain:The reason of not including the income earned in the middle of the year by the company in the calculation of net income of the combined company.

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