Business combination: Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations. Fair value of the asset: Fair value of the asset is the amount at which two parties may enter into an agreement with open hand. : Whether the asked price seem to be a real bargain or not. Also, decide whether the price is reasonable for an interest of 60% after considering the entire equity of AI’s Hardware.

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Answer 1

Question

Chapter 2, Problem 2.1.1C

To determine

Business combination:

Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Fair value of the asset:

Fair value of the asset is the amount at which two parties may enter into an agreement with open hand.

:

Whether the asked price seem to be a real bargain or not. Also, decide whether the price is reasonable for an interest of 60% after considering the entire equity of AI’s Hardware.

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Answer 2

Question

Chapter 2, Problem 2.1.1C

To determine

Business combination:

Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Fair value of the asset:

Fair value of the asset is the amount at which two parties may enter into an agreement with open hand.

:

Whether the asked price seem to be a real bargain or not. Also, decide whether the price is reasonable for an interest of 60% after considering the entire equity of AI’s Hardware.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 2, Problem 2.1.1C

To determine

Business combination:

Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Fair value of the asset:

Fair value of the asset is the amount at which two parties may enter into an agreement with open hand.

:

Whether the asked price seem to be a real bargain or not. Also, decide whether the price is reasonable for an interest of 60% after considering the entire equity of AI’s Hardware.

Expert Solution & Answer

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Answer 4

Question

Chapter 2, Problem 2.1.1C

To determine

Business combination:

Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Fair value of the asset:

Fair value of the asset is the amount at which two parties may enter into an agreement with open hand.

:

Whether the asked price seem to be a real bargain or not. Also, decide whether the price is reasonable for an interest of 60% after considering the entire equity of AI’s Hardware.

Expert Solution & Answer

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Answer 5

Chapter 2, Problem 2.1.1C

To determine

Business combination:

Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Fair value of the asset:

Fair value of the asset is the amount at which two parties may enter into an agreement with open hand.

:

Whether the asked price seem to be a real bargain or not. Also, decide whether the price is reasonable for an interest of 60% after considering the entire equity of AI’s Hardware.

Answer 6

Chapter 2, Problem 2.1.1C

To determine

Business combination:

Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Fair value of the asset:

Fair value of the asset is the amount at which two parties may enter into an agreement with open hand.

:

Whether the asked price seem to be a real bargain or not. Also, decide whether the price is reasonable for an interest of 60% after considering the entire equity of AI’s Hardware.

Answer 7

Chapter 2, Problem 2.1.1C

To determine

Business combination:

Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Fair value of the asset:

Fair value of the asset is the amount at which two parties may enter into an agreement with open hand.

:

Whether the asked price seem to be a real bargain or not. Also, decide whether the price is reasonable for an interest of 60% after considering the entire equity of AI’s Hardware.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 2 - Prob. 1UTI Ch. 2 - Prob. 2UTI Ch. 2 - Prob. 3UTI Ch. 2 - Prob. 4UTI Ch. 2 - Prob. 5UTI Ch. 2 - Prob. 6UTI Ch. 2 - Santos Corporation is considering investing in...Ch. 2 - Prob. 2.1E Ch. 2 - Prob. 2.2E Ch. 2 - Prob. 3.1E

Solution Summary: The author explains that business combination is the combining of one or more business organizations in a single entity.

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