LOOSE-LEAF Advanced Financial Accounting with Connect
LOOSE-LEAF Advanced Financial Accounting with Connect
11th Edition
ISBN: 9781259605192
Author: Theodore E. Christensen
Publisher: McGraw-Hill Education
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Chapter 4, Problem 4.9Q
To determine

Differential:

In investment accounting, the term differential is used to represent the difference between the sum of fair value paid, the fair value of shares already owned by the investing company, fair value of non-controlling interest and the book value of the net identifiable assets acquired.

To Indicate: The importance of a consolidated financial statement in case of a large differential.

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